SB30: Bill Text

This bill provides that, with regard to a single-owner entity that is disregarded as a separate entity for federal tax purposes, any notice that DOR sends to the owner or to the entity is considered a notice sent to both and both are liable for any amounts due as specified in the notice. The bill applies to all laws administered by DOR.

Under this bill, for the two-day period beginning on the first Saturday in August and ending on the following Sunday, the sales of the following items are exempt from the sales tax and the use tax:

1. An item of clothing, not including clothing accessories, if the sales price of any single item is no more than $75.

2. A computer purchased by the consumer for the consumer's personal use, if the sales price of the computer is no more than $750.

3. School computer supplies, if the sales price of any single item is no more than $250.

4. School supplies, if the sales price of any single item is no more than $75.

The bill provides, however, that the exemption does not apply after 2018.

Under current law, there is a sales and use tax exemption for occasional sales of property, items, goods, and services. “Occasional sales” is defined to include isolated and sporadic sales of property, items, goods, and services where the infrequency supports the inference that the seller is not pursuing a full-time or part-time vocation, occupation, or business. This bill modifies the definition of occasional sales to provide a presumption that a seller who sells less than $2,000 of property, items, goods, and services during a calendar year is not pursuing a full-time or part-time vocation, occupation, or business.

This bill creates an exemption from the state sales and use tax for certain frozen foods manufactured by a retailer at the retailer's off-site manufacturing facility. Under current law, the sale of food and food ingredients is generally exempt from the sales and use tax, but most prepared foods are excluded from that exemption. Under current law, “prepared food” includes, among other things, two or more food ingredients mixed or combined by a retailer for sale as a single item. The bill creates a sales and use tax exemption for prepared food sold by a retailer that meets all of the following conditions:

1. The prepared food is manufactured by the retailer in a building assessed for property tax purposes as manufacturing property or that would be assessed as manufacturing property if the building was located in this state.

2. The retailer makes no retail sales of prepared food at the building in which the prepared food is manufactured.

3. The retailer freezes the prepared food prior to its sale.

4. The retailer sells the prepared food at retail in a frozen state.

5. The prepared food is not sold with eating utensils that are provided by the retailer.

6. The prepared food is not candy, soft drinks, or dietary supplements.

This bill expands the sales and use tax exemption for property, items, and services (products) sold in connection with real property construction activities as part of a lump sum contract to all construction contracts. Under current law, there is a sales and use tax exemption for products sold by a contractor as part of a lump sum contract for real property construction activities if the total sales price attributable to the taxable products is less than 10 percent of the total contract price. Under the bill, the exemption is expanded to apply to all construction contracts involving real property construction activities if the total sales price of the taxable products is less than 10 percent of the total contract price. If the exemption applies, the contractor is the consumer of, and pays the sales tax on, the products.

This bill also provides that, if the prime contract qualifies for the exemption, the exemption applies to all subcontracts entered into with respect to the real property construction activities. If the exemption applies to a subcontract, the subcontractor is the consumer of, and pays the sales tax on, the products. Under current law, if a construction contract is between a contractor and a tax-exempt entity, the contractor may purchase, without tax for resale to the tax-exempt entity, any products that will be sold by the contractor to the tax-exempt entity as part of a construction contract. The bill extends that sales and use tax exemption to products purchased by a subcontractor for eventual resale to the tax-exempt entity.

This bill provides that a seller who continues to collect sales tax erroneously on a product after receiving two or more written notices from DOR indicating that the product is not taxable is entitled to an adjustment or a refund of the tax collected only if the seller returns the tax and related interest to the buyers or to DOR if the buyers cannot be located. A seller who fails to submit the tax and interest within the 90-day period is subject to a penalty equal to 25 percent of the tax and interest or, in the case of fraud, a penalty equal to the tax and interest. The penalty provided in the bill is the same as the penalty under current law for other instances when a seller claims an adjustment or a refund of sales tax, but fails to submit the tax and interest to the buyer or to DOR.

Current law requires a state agency to enter into an agreement with DOR to have DOR collect debts owed to the agency that are more than 90 days past due, except under certain circumstances. This bill requires an agency to exclude certain debts from collection if the agency receives written notice from DOA or DOR identifying the specific debts for exclusion.

Transportation

Highways

This bill allows general obligation bonding in an amount not exceeding $449,738,300 under one of the provisions authorizing bonding for DOT to fund state highway rehabilitation projects.

Under current law, the Building Commission may issue revenue bonds for major highway projects and transportation administrative facilities in a principal amount that may not exceed $3,931,472,900. This bill increases the revenue bond limit to $4,096,634,600.

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, state, federal, and local appropriations authorize DOT expenditures for the installation, replacement, or rehabilitation of traffic control signals and intelligent transportation systems. Under current law, no money from these appropriations may be encumbered after June 30, 2019. This bill extends the date after which no money from each appropriation may be encumbered to June 30, 2021.

Drivers and motor vehicles

Under current law, at least 30 days prior to the expiration of a motor vehicle's registration, DOT must mail to the last-known address of the registrant a notice of the date upon which the registration must be renewed and an application form for renewal of registration. Under this bill, DOT may provide these materials by electronic mail.

Currently, at least 30 days prior to the expiration of a special identification card for a person with a disability that limits or impairs the ability to walk, DOT must mail to the last-known address of the cardholder a renewal application. Under this bill, DOT may provide this application by electronic mail.

Also under current law, no person may operate or knowingly permit the operation of a motor vehicle if the registration for that vehicle is suspended, revoked or canceled. It is a defense to an alleged violation of this provision that the person did not know, and had no reason to know, that the registration was suspended, revoked, or canceled at the time of the violation. However, refusal to accept or failure to receive an order of suspension, revocation, or cancellation mailed by DOT to the person's last-known address is not a defense to a violation of this provision. This bill provides that a refusal to accept or failure to receive an order of suspension, revocation, or cancellation provided by DOT by electronic mail to the person's last-known electronic mail address is also not a defense.

Currently, DOT is required to notify certain motor vehicle owners by mail that an emissions inspection must be performed. Under this bill, if the vehicle owner desires, DOT may notify these owners by electronic means.

This bill increases the penalty for generic inattentive driving and for composing or sending an electronic text or electronic mail message while driving to a forfeiture of not less than $40 nor more than $400.

Under current law, anyone wishing to transport certain radiological materials on a highway must first obtain a permit from DOT. DOT must charge a fee of $1,800 for this permit. Moneys collected from the issuance of these permits are deposited in the general fund and appropriated for providing escort services for the carriers of radiological materials. Under this bill, moneys collected from the issuance of these permits are deposited in the transportation fund.

Transportation aids

Under current law, DOT makes aid payments to counties based on a share-of-costs formula and to municipalities based on the greater of a share-of-costs formula or an aid rate per mile. Under this bill, the aid rate per mile is increased to $2,389. The bill also increases the maximum amount of aid that may be paid to counties under the program to $111,093,800 and increases the maximum amount of aid that may be paid to municipalities under the program to $348,639,300.

Under current law, DOT administers the Local Roads Improvement Program (LRIP) to assist political subdivisions in improving seriously deteriorating local roads by reimbursing political subdivisions for certain improvements. LRIP includes an entitlement component and a discretionary component. Under the entitlement component, DOT distributes an appropriated amount to political subdivisions according to statutorily prescribed allocation percentages. Under the discretionary component, DOT allocates funds in fiscal year 2016-17 and each fiscal year thereafter as follows: $5,127,000 to fund eligible county trunk highway improvements, $5,732,500 to fund eligible town road improvements, and $976,500 to fund eligible municipal street improvements.

This bill increases DOT's allocations for the discretionary component of LRIP for fiscal year 2017-18 and each fiscal year thereafter as follows: $5,500,000 to fund eligible county trunk highway improvements, $6,000,000 to fund eligible town road improvements, and $5,000,000 to fund eligible municipal street improvements.

Currently under LRIP, DOT may reimburse a political subdivision for up to 50 percent of the eligible costs of a completed improvement. Under this bill, DOT may reimburse a political subdivision for up to 50 percent of the eligible costs of an improvement funded under the entitlement component and up to 60 percent of the eligible costs of an improvement funded under the discretionary component.

Rail and air transportation

Under current law, the state may contract up to $238,300,000 in public debt for DOT to acquire railroad property and to provide grants and loans for railroad property acquisition and improvement. This bill increases this authorized general obligation bonding limit for these purposes to $250,300,000.

Other transportation

Under this bill, beginning on June 30, 2020, the secretary of administration must annually transfer from the petroleum inspection fund to the transportation fund the unencumbered balance of the petroleum inspection fund, less a reserve amount.

This bill also transfers $24,000,000 from the petroleum inspection fund to the transportation fund in each year of the fiscal biennium.

This bill also allows general obligation bonding in an amount not exceeding $120,000,000 for DOT to provide grants for harbor improvements.

veterans

This bill increases the maximum that a federally recognized state veterans organization may receive under a certain grant program administered by DVA from $70,000 to $100,000. The bill also removes the current law requirement that grants that are provided by DVA to counties to improve services for veterans are provided solely on a reimbursable basis.

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:

SB30,1 Section 1 . 13.0963 of the statutes is created to read:

SB30,50,4 13.0963 Review of bills creating occupational licenses. (1) Definition. In this section, “license” includes any permit, certificate, approval, registration, charter or similar form of permission.

SB30,51,6 (2) Report on bills creating occupational licenses. (a) If any bill that is introduced in either house of the legislature creates a requirement that an individual obtain a license in order to engage in a particular profession or occupation or a requirement that a license be obtained in order for a particular type of business to be owned or operated, the department of administration shall prepare and issue an occupational license report on the bill within 30 business days after it is introduced. The department shall request information from any individual or business that the department considers likely to be affected by the proposed licensure requirement and shall request a statement or analysis from the agency that would be required to administer the licensure requirement. Individuals, businesses, and agencies shall comply with requests by the department for information that is reasonably necessary for the department to prepare the report. To the greatest extent possible, reports under this section shall be based on the information obtained by the department from individuals, businesses, and agencies under this paragraph.

SB30,51,10 (b) A bill that requires a report by the department of administration under this section shall have that requirement noted on its jacket when the jacket is prepared. When a bill that requires a report under this section is introduced, the legislative reference bureau shall submit a copy of the bill to the department of administration.

SB30,51,17 (c) The report prepared under this section shall be printed as an appendix to the applicable bill and shall be distributed in the same manner as amendments. The report shall be distributed before any vote is taken on the bill by either house of the legislature if the bill is not referred to a standing committee, or before any public hearing is held before any standing committee or, if no public hearing is held, before any vote is taken by the committee. The department of administration shall also publish the report on its Internet site.

SB30,51,19 (3) Findings to be contained in the report. The department of administration shall include all of the following in a report prepared under sub. (2):

SB30,51,23 (a) An evaluation of whether the unregulated practice of the profession, occupation, or business can clearly harm or endanger the health, safety, or welfare of the public, and whether the potential for the harm is recognizable and not remote or speculative.

SB30,51,25 (b) An evaluation of whether the public can reasonably be expected to benefit from the requirement for the license.

SB30,52,2 (c) An evaluation of whether the public can be effectively protected by any means other than requiring a license.

SB30,52,4 (d) An analysis of whether licensure requirements for that profession, occupation, or business exist in other states.

SB30,52,6 (e) An estimate of the number of individuals or businesses that would be affected by the requirement.

SB30,52,11 (f) An estimate of the total additional financial burden that will be imposed on an individual or business as a result of the licensure requirement, including education or training costs, examination fees, private credential fees, credential fees imposed by the agency, and other costs that the individual or business will have to incur in order to obtain the license.

SB30,52,13 (g) Any statement or analysis from the agency that would administer the licensure requirement.

SB30,2 Section 2 . 13.101 (6) (a) of the statutes is amended to read:

SB30,53,8 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, or the University of Wisconsin System, or to any other state agency or activity, by such amount as it deems feasible, not exceeding 25 percent of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (cg), and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax), and (6) (af), (aq), (ar), and (au), 20.435 (4) (a) and (5) (da), and 20.437 (2) (a) and (dz) or for forestry purposes under s. 20.370 (1) (2), or any other moneys distributed to any county, city, village, town, or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

SB30,3 Section 3 . 13.48 (3) of the statutes is amended to read:

SB30,54,4 13.48 (3) State building trust fund. In the interest of the continuity of the program, the moneys appropriated to the state building trust fund under s. 20.867 (2) (f) shall be retained as a nonlapsing building depreciation reserve. Such moneys shall be deposited into the state building trust fund. At such times as the building commission directs, or in emergency situations under s. 16.855 (16) (b), the governor shall authorize releases from this fund to become available for projects and shall direct the department of administration to allocate from this fund such amounts as are approved for these projects. In issuing such directions, the building commission shall consider the cash balance in the state building trust fund, the necessity and urgency of the proposed improvement, employment conditions and availability of materials in the locality in which the improvement is to be made. The building commission may authorize any project costing $760,000 $900,000, subject to adjustment under s. 16.40 (20m), or less in accordance with priorities to be established by the building commission and may adjust the priorities by deleting, substituting or adding new projects as needed to reflect changing program needs and unforeseen circumstances. The building commission may enter into contracts for the construction of buildings for any state agency, except a project authorized under sub. (10) (c), and shall be responsible for accounting for all funds released to projects. The building commission may designate the department of administration or the agency for which the project is constructed to act as its representative in such accounting.

SB30,4 Section 4 . 13.48 (6) of the statutes is amended to read:

SB30,54,18 13.48 (6) Review of projects. All reports submitted as provided by sub. (4) shall be reviewed by the building commission, which shall make its report as soon after November 20 as is possible. Such report shall include specific recommendations and establish priorities for the next 3 biennia from among all projects submitted which the building commission deems essential and shall recommend additional appropriations if necessary for the execution thereof. The building commission shall include in the report any projects proposed by the state fair park board involving a cost of not more than $250,000, subject to adjustment under s. 16.40 (20m), together with the method of financing proposed for those projects by the board, without recommendation. The building commission shall include in its report an appraisal and recommendation of available and alternative methods of financing buildings for the use of state agencies and shall file copies of its report with the governor-elect.

SB30,5 Section 5 . 13.48 (7) of the statutes is amended to read:

SB30,55,6 13.48 (7) Biennial recommendations. The building commission shall prepare and formally adopt recommendations for the long-range state building program on a biennial basis. The building commission shall include in its report any projects proposed by the state fair park board involving a cost of not more than $250,000, subject to adjustment under s. 16.40 (20m), together with the method of financing those projects proposed by the board, without recommendation. Unless a later date is requested by the building commission and approved by the joint committee on finance, the building commission shall, no later than the first Tuesday in April of each odd-numbered year, transmit the report prepared by the department of administration under s. 16.40 (20) and the commission's recommendations for the succeeding fiscal biennium that require legislative approval to the joint committee on finance in the form of proposed legislation prepared in proper form.

SB30,6 Section 6 . 13.48 (10) (a) of the statutes is amended to read:

SB30,55,17 13.48 (10) (a) Except as provided in par. (c), no state board, agency, officer, department, commission, or body corporate may enter into a contract for the construction, reconstruction, remodeling of, or addition to any building, structure, or facility, in connection with any building project which involves a cost in excess of $185,000 $250,000, subject to adjustment under s. 16.40 (20m), without completion of final plans and arrangement for supervision of construction and prior approval by the building commission. This section applies to the department of transportation only in respect to buildings, structures, and facilities to be used for administrative or operating functions, including buildings, land, and equipment to be used for the motor vehicle emission inspection and maintenance program under s. 110.20.

SB30,7 Section 7 . 13.48 (10) (b) 5. of the statutes is amended to read:

SB30,55,21 13.48 (10) (b) 5. Contracts for construction of any building, structure or facility for the state fair park board involving a cost of not more than $250,000 , subject to adjustment under s. 16.40 (20m).

SB30,8 Section 8 . 13.48 (29) of the statutes is amended to read:

SB30,56,3 13.48 (29) Small Simplified policies and procedures for construction projects. Except as otherwise required under s. 16.855 (10m), the building commission may prescribe simplified policies and procedures to be used in lieu of the procedures provided in s. 16.855 for any construction project that does not require prior approval of the building commission under sub. (10) (a) involving a cost of not more than $185,000, except projects specified in sub. (10) (c).

SB30,9 Section 9 . 15.01 (2) of the statutes is amended to read:

SB30,56,15 15.01 (2) “Commission" means a 3-member governing body in charge of a department or independent agency or of a division or other subunit within a department, except for the employment relations commission which shall consist of one chairperson, the Wisconsin waterways commission which shall consist of 5 members, the elections commission which shall consist of at least 6 members, the ethics commission which shall consist of at least 6 members, and the parole commission which shall consist of 8 members. A Wisconsin group created for participation in a continuing interstate body, or the interstate body itself, shall be known as a “commission", but is not a commission for purposes of s. 15.06. The parole commission created under s. 15.145 (1) shall be known as a “commission", but is not a commission for purposes of s. 15.06.

SB30,10 Section 10 . 15.01 (2) of the statutes, as affected by 2017 Wisconsin Act .... (this act), is amended to read:

SB30,57,3 15.01 (2) “Commission" means a 3-member governing body in charge of a department or independent agency or of a division or other subunit within a department, except for the employment relations commission which shall consist of one chairperson, the Wisconsin waterways commission which shall consist of 5 members, the elections commission which shall consist of at least 6 members, and the ethics commission which shall consist of at least 6 members, and the parole commission which shall consist of 8 members. A Wisconsin group created for participation in a continuing interstate body, or the interstate body itself, shall be known as a “commission", but is not a commission for purposes of s. 15.06. The parole commission created under s. 15.145 (1) shall be known as a “commission", but is not a commission for purposes of s. 15.06.

SB30,11 Section 11 . 15.01 (4) of the statutes is amended to read:

SB30,57,12 15.01 (4) “Council" means a part-time body appointed to function on a continuing basis for the study, and recommendation of solutions and policy alternatives, of the problems arising in a specified functional area of state government, except the council on physical disabilities has the powers and duties specified in s. 46.29 (1) and (2), the state council on alcohol and other drug abuse has the powers and duties specified in s. 14.24, the uniform dwelling code council has the powers and duties specified in s. 101.596, and the electronic recording council has the powers and duties specified in s. 706.25 (4).

SB30,12 Section 12 . 15.06 (1) (bm) of the statutes is created to read:

SB30,57,17 15.06 (1) (bm) The employment relations commission shall consist of a chairperson, appointed by the governor for a 6-year term, except that the term of the first chairperson appointed after the effective date of this paragraph .... [LRB inserts date], expires on March 1, 2023.

SB30,13 Section 13 . 15.06 (2) (a) of the statutes is amended to read:

SB30,58,2 15.06 (2) (a) Except as provided in par. (b), each commission may annually elect officers other than a chairperson from among its members as its work requires. Any officer may be reappointed or reelected. At the time of making new nominations to commissions, the governor shall designate a member or nominee of each commission, other than the public service commission, and except as provided in par. (b), to serve as the commission's chairperson for a 2-year term expiring on March 1 of the odd-numbered year except that the labor and industry review commission shall elect one of its members to serve as the commission's chairperson for a 2-year term expiring on March 1 of the odd-numbered year.

SB30,14 Section 14 . 15.06 (3) (a) 4. of the statutes is repealed.

SB30,15 Section 15 . 15.06 (3) (c) of the statutes is repealed.