AB21: Bill Text

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.

Under current law, certain persons who transport passengers or property by motor vehicle on highways (motor carriers) are subject to certain regulations. Current law defines one type of motor carrier, a "private motor carrier," as "any person except a common or contract motor carrier engaged in the transportation of property by motor vehicle other than an automobile or trailer used therewith, upon the public highways." Under this bill, a "private motor carrier" is defined to mean "any person who provides transportation of property or passengers by commercial motor vehicle and is not a contract motor carrier."

Under current law, DOT must charge an applicant for a commercial driver license and for an endorsement to operate a school bus. This bill waives those fees for an applicant holding a military commercial driver license.

Transportation aids

Under current law, DOT administers a transportation facilities economic assistance and development (TEA) program. Under the program, DOT may award a grant to a political subdivision to provide up to 50 percent of the cost of improvements to transportation facilities, if the political subdivision provides at least 50 percent of the cost of the improvement. This bill increases the state share of the cost of an improvement project to 80 percent of the total project cost and reduces the local share to 20 percent of the total project cost.

Rail and air transportation

This bill allows general obligation bonding in an amount not exceeding $251,500,000 for railroad property acquisition and improvement and in an amount not exceeding $79,000,000 for rail passenger route development.

Under current law, most public property is subject to local special assessment. One exception provides that certain state highway or railway property is not subject to local special assessment. This bill specifies that certain state property related to freight rail service is not subject to local special assessment.

Under current law DOT may enter into sponsorship agreements under which DOT displays material associated with the sponsor at locations owned or controlled by DOT for a fee or provision of services. Fees received by DOT under an agreement may be used by DOT for certain specified purposes, including the maintenance and repair of state trunk highways and routine maintenance activities performed under contract with DOT.

Under this bill, the fees received by DOT for the display of material at a passenger railroad station are deposited into the transportation fund.

Other transportation

Under current law, rail transport generally is regulated by the Federal Railroad Administration (FRA). The FRA does not regulate certain public transportation systems that operate along a fixed guideway. This bill creates a transit safety oversight program within DOT, under which DOT may oversee, enforce, investigate, and audit all safety aspects of fixed guideway transit systems.

Under current law, the Building Commission may issue revenue bonds for major highway projects and transportation administrative facilities. DOT may deposit in a special trust fund vehicle registration and titling fee revenues that are pledged for the repayment of these revenue bonds. This bill allows DOT to pledge one-half of motor vehicle fuel tax revenues for the repayment of revenue bonds.

Under current law, DOT administers an elderly and disabled transportation capital assistance program to award grants to qualified private, nonprofit organizations and local public bodies for capital costs related to specialized vehicles and facilities used to provide transportation services to elderly and disabled persons.

This bill changes several of the requirements of the program. Under the bill: 1) the program is not limited to capital costs; 2) the assistance beneficiary category is changed to seniors age 65 or older; 3) DOT need not maintain an annual application cycle; and 4) several statutory requirements that are in addition to federal requirements are eliminated.

This bill transfers administration of the pretrial intoxicated driver intervention grant program from DOT to DHS.

Veterans

Under current law, DVA administers a grant program for a grant of $500,000 to VETransfer, Inc. (VETransfer), an organization that provides training and other assistance to veterans engaged in entrepreneurship. Of those moneys, VETransfer is required to use at least $300,000 to make grants to Wisconsin veterans or their businesses to cover costs associated with the start-up of veteran-owned businesses located in Wisconsin, and VETransfer is authorized to use up to $200,000 to provide entrepreneurial training and related services to Wisconsin veterans. VETransfer must repay to the state any moneys not used by June 30, 2017.

This bill transfers that grant program to the Forward Wisconsin Development Authority.

Under current law, DVA subsistence payments and health care assistance to certain veterans and their dependents and a person may be eligible for those benefits only if the person is a resident of and living in Wisconsin at the time the person applies for the benefits. This bill eliminates that residency requirement for such subsistence payments and health care assistance.

Also under current law, the parent of a veteran may be eligible for admission as a resident in a veterans home in Wisconsin. The bill limits that eligibility to a parent of a person who died while serving in the U.S. armed forces.

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:

AB21,1 Section 1. 1.12 (1) (b) of the statutes is amended to read:

AB21,50,2 1.12 (1) (b) "State agency" means an office, department, agency, institution of higher education, the legislature, a legislative service agency, the courts, a judicial branch agency, an association, society, or other body in state government that is created or authorized to be created by the constitution or by law, for which appropriations are made by law, excluding the Wisconsin Economic Development Corporation Forward Wisconsin Development Authority.

AB21,2 Section 2. 5.15 (1) (c) of the statutes is amended to read:

AB21,50,17 5.15 (1) (c) The wards established by municipal governing bodies in a division ordinance or resolution enacted or adopted under this section shall govern the adjustment of supervisory districts under s. 59.10 (2) (a) and (3) (b) and of aldermanic districts under s. 62.08 (1) for the purpose of local elections beginning on January 1 of the 2nd year commencing after the year of the census until revised under this section on the basis of the results of the next decennial census of population unless adjusted under sub. (2) (f) 4. or 5., (6) (a), or (7), or unless a division is required to effect an act of the legislature redistricting legislative districts under article IV, section 3, of the constitution or redistricting congressional districts. The populations of wards under each decennial ward division shall be determined on the basis of the federal decennial census and any official corrections to the census issued on or before the date of adoption of the division ordinance or resolution to reflect the correct populations of the municipality and the blocks within the municipality on April 1 of the year of the census.

AB21,3 Section 3. 5.15 (2) (f) 5. of the statutes is created to read:

AB21,50,23 5.15 (2) (f) 5. Territory that lies between an actual municipal boundary that existed on April 1 of the year of a federal decennial census and an intersecting municipal boundary that deviates from the actual municipal boundary on that date if the deviating boundary was used by the U.S. bureau of the census to enumerate the population of the municipality in that census.

AB21,4 Section 4. 5.15 (4) (b) of the statutes is amended to read:

AB21,51,8 5.15 (4) (b) Within 5 days after adoption or enactment of an ordinance or resolution under this section or any amendment thereto, the municipal clerk shall transmit one copy of the ordinance or resolution or the amendment to the county clerk of each county in which the municipality is contained, accompanied by the list and map specified in par. (a). If the population of the municipality exceeds 10,000, the municipal clerk shall furnish one copy to the legislative reference bureau at the same time. Each copy shall identify the name of the municipality and the county or counties in which it is located.

AB21,5 Section 5. 5.15 (4) (bg) of the statutes is created to read:

AB21,51,19 5.15 (4) (bg) No later than October 15 of each year following the year of a federal decennial census, each municipal clerk shall file a report with the county clerk of each county in which the municipality is contained confirming the boundaries of the municipality and of all wards in the municipality. The report shall be accompanied by a map of the municipality and a list of the block numbers of which the municipality and each ward within the municipality are comprised. Within 5 days after notice to the municipal clerk of a judgment that has the effect of changing the municipal boundaries, the clerk shall file the same report. Each report filed under this paragraph shall identify the name of the municipality and the county or counties in which it is located.

AB21,6 Section 6. 5.15 (4) (br) of the statutes is created to read:

AB21,52,2 5.15 (4) (br) 1. Except as provided in subd. 2., no later than January 15 and July 15 of each year, the county clerk shall transmit to the legislative technology services bureau a report confirming the boundaries of each municipality, ward, and supervisory district in the county together with a map of the county, in an electronic format approved by the legislative technology services bureau. Each report shall be current to the nearest January 1 or July 1 preceding the date of the report.

AB21,52,7 2. In each year following the year of a federal decennial census, the July report shall instead be transmitted no later than November 1 and shall be current to the date of the report. The November 1 report shall be accompanied by a list of the block numbers of which the county and each municipality and ward within the county are comprised.

AB21,7 Section 7. 5.15 (7) of the statutes is amended to read:

AB21,52,24 5.15 (7) If a new town municipality is created or if part of a town municipality is annexed to a city or village during a decennial period after April 1 of the year of the federal decennial census, the town board governing body of any town municipality to which territory is attached or from which territory is detached, without regard to the time provisions of sub. (1) (b), may, by ordinance or resolution, create new wards or adjust the existing wards in that town municipality to the extent required to reflect the change. If a municipality is consolidated with another municipality during a decennial period after April 1 of the year of the federal decennial census, the governing body of the consolidated municipality, without regard to the time provisions under sub. (1) (b), may, by ordinance or resolution, create new wards or adjust the existing wards of the municipality to the extent required to reflect the change. No ward line adjustment under this subsection may cross the boundary of a congressional, assembly, or supervisory district. The Within 5 days after adoption of the ordinance or resolution, the municipal clerk shall transmit copies of the ordinance or resolution making the adjustment to the county clerk in compliance with sub. (4) (b).

AB21,8 Section 8. 7.33 (1) (c) of the statutes is amended to read:

AB21,53,3 7.33 (1) (c) "State agency" has the meaning given under s. 20.001 (1) and includes an authority created under subch. II of ch. 114 or ch. 36, 231, 232, 233, 234, or 237.

AB21,9 Section 9. 11.36 (1) of the statutes is amended to read:

AB21,53,14 11.36 (1) No person may solicit or receive from any state officer or employee or from any officer or employee of the University of Wisconsin Hospitals and Clinics Authority or the University of Wisconsin System Authority any contribution or service for any political purpose while the officer or employee is engaged in his or her official duties, except that an elected state official may solicit and receive services not constituting a contribution from a state officer or employee or an officer or employee of the University of Wisconsin Hospitals and Clinics Authority or the University of Wisconsin System Authority with respect to a referendum only. Agreement to perform services authorized under this subsection may not be a condition of employment for any such officer or employee.