FAX: (608) 267-0560
Fiscal Estimate
There is no fiscal effect.
Notice of Hearing
Regulation and Licensing
Notice is hereby given that pursuant to authority vested in the Department of Regulation and Licensing in s. 227.11 (2), Stats., and s. 440.974, Stats., and interpreting ss. 440.972, 440.973, 440.975, 440.978 and 440.999, Stats., the Department of Regulation and Licensing will hold a public hearing at the time and place indicated below to consider an order to create chs. RL 131 to 135, relating to the registration and regulation of home inspectors; and to consider the emergency rules that are now in effect relating to home inspectors.
Hearing Information
Date & Time Location
December 17, 1998 Rm. 180
Thursday 1400 East Washington Ave.
1:00 p.m. MADISON, WI
Written Comments
Interested persons are invited to present information at the hearing. Persons appearing may make an oral presentation, but are urged to submit facts, opinions and argument in writing as well. Facts, opinions and argument may also be submitted in writing without a personal appearance by mail addressed to the Department of Regulation and Licensing, Office of Administrative Rules, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by January 4, 1999 to be included in the record of rule-making proceedings.
Analysis Prepared by the Dept. of Regulation and Licensing
Statutes authorizing promulgation: s. 227.11 (2), Stats., and s. 440.974, Stats., as created by 1997 Wis. Act 81.
Statutes interpreted: ss. 440.972, 440.973, 440.975, 440.978 and 440.999, Stats.
This proposed rule-making order creates new rules, relating to 1997 Wis. Act 81, which was published on April 27, 1998, and which initiates the regulation of home inspectors in Wisconsin on November 1, 1998.
These rules create 5 chapters, numbering from RL 131 to RL 135, relating to authority and definitions, applications, examinations, standards of practice, and continuing education. These rules were developed with the advice and counsel of an advisory committee, created pursuant to 1997 Wis. Act 81 and consisting of 6 home inspectors and 3 public members.
Chapter RL 131 states the authority for the rules and defines 29 terms which are used in chs. RL 131 to 135.
Chapter RL 132 contains 3 sections which state the requirements for registration as a home inspector and these sections designate what requirements must be satisfied to be registered, depending on the date of application and the availability of one or other part of a registration examination, as specified in ch. RL 133. Chapter RL 132 also states the requirements for renewing a credential before and after the renewal date. In both cases, satisfaction of continuing education is required. Chapter RL 132 also states that registration of an applicant may be denied for fraud or misrepresentation in the application or for any of the grounds under s. 440.978, Stats., for which the department may discipline a registrant.
Chapter RL 133 creates the examination requirements referenced in ch. RL 132. The provisions create a two-part examination or, at a certain point in time, a single-part examination which combines Part I and Part II. Part I of the examination covers the Wisconsin statutes relating to home inspections. Part II will cover administrative rules and other principles and procedures relating to the practice of home inspection. Since Part II will not be available before January 1, 2000, applicants will not be required to complete Part II before that date; however, they must complete Part II in order to renew their credential in a timely manner in the fall of 2000. This chapter also creates sections relating to the passing grade on the examination and procedures for applicants to review their examination.
Chapter RL 134 creates standards of practice for conducting and reporting on home inspections. This chapter has provisions relating to general requirements and provisions relating to the inspection of mechanical and structural components, including foundations, columns, flooring systems, roofs, exteriors, plumbing systems, electrical systems, interiors, heating systems, central air conditioning, and insulation and ventilation. This chapter also requires a home inspector to give a client a written report following an inspection. The rules specify what must be stated in the report and what is not required to be stated in the report.
Chapter RL 135 contains provisions relating to continuing education. The rules define “hour" as being 50 minutes of classroom instruction. The rules require 40 hours of continuing education every two years, as required by 1997 Wis. Act 81. The rules contain provisions relating to instructors receiving approval for classes they instruct, an extension of time to complete the required education for health reasons or active duty in the military service, requirements that home inspectors receive a certificate of completion from a program provider, requirements that approved courses shall relate to the general subject of home inspections, and a prohibition against a person being approved to instruct continuing education courses while a disciplinary action is in effect against the person.
Fiscal Estimate
These rules implement the regulation of home inspectors as enacted with the creation of 1997 Wis. Act 81. The Department is estimating that there will be 600 registrants, which is double its original estimate. The re-estimate is based on the number of applications which have been requested and on the number of applicants taking the statute and rules examination.
The costs associated with this legislation have been enumerated in the agency's biennial budget request. Costs include expenses of holding quarterly meetings of the Secretary's Advisory Committee of $3,348, printing costs of $580 and $530 in postage costs. These costs may be higher than previously estimated because of the re-estimate of applicants.
Annual revenues for this profession are estimated to be $12,300.
The Department is not aware of any local government costs.
Initial Regulatory Flexibility Analysis
These proposed rules will be reviewed by the Department through its Small Business Review Advisory Committee to determine whether there will be an economic impact on a substantial number of small businesses, as defined in s. 227.114 (1) (a), Stats.
Copies of Rule and Contact Person
Copies of these proposed rules and of the emergency rules are available without cost upon request to:
Pamela Haack
Office of Administrative Rules
Dept. of Regulation and Licensing
1400 East Washington Ave., Room 171
P.O. Box 8935
Madison, WI 53708
Telephone (608) 266-0495
Notice of Proposed Rule
Revenue
Notice is hereby given that pursuant to s. 227.11 (2) (a), Stats., and interpreting s. 77.54 (9a), Stats., s. 77.51(18) and (22) (a), Stats., as amended by 1997 Wis. Act 27 and s. 77.54 (43), Stats., as created by 1997 Wis. Act 27, and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on December 1, 1998, it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.
Contact Person
Please contact Mark Wipperfurth at (608) 266-8253, if you have any questions regarding this proposed rule order.
Analysis by the Dept. of Revenue
Statutory authority: s. 227.11 (2) (a)
Statutes interpreted: s. 77.54 (9a), Stats., s. 77.51 (18) and (22) (a), Stats., as amended by 1997 Wis. Act 27, and s. 77.54 (43), Stats., as created by 1997 Wis. Act 27
SECTION 1. Tax 11.19 (2) (d) and (f) and (5) (intro.) and (b) are amended, to reflect the amendment of s. 77.51 (18) and (22) (a), Stats., and the creation of s. 77.54 (43), Stats., by 1997 Wis. Act 27. These changes provide a sales tax exemption for raw materials of printed materials transported and used solely outside of Wisconsin. Previously, these materials were only exempt from use tax.
Tax 11.19 (6) is amended, to clarify that the exemption for governmental units applies only to Wisconsin governmental units, and to reflect that certificate of exempt status numbers are being given to governmental units.
SECTION 2. Tax 11.70 (3) (m) is created, to reflect the amendment of s. 77.51 (18) and (22) (a), Stats., and the creation of s. 77.54 (43), Stats., by 1997 Wis. Act 27.
Text of Rule
SECTION 1. Tax 11.19 (2) (d) and (f), (5) (intro.) and (b) and (6) are amended to read:
Tax 11.19 (2) (d) Section 77.54 (2m), Stats., provides an exemption for the “gross receipts from the sales of and
the storage, use or other consumption of tangible personal property or services that become an ingredient or component of shoppers guides, newspapers or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers or periodicals, whether or not the shoppers guides, newspapers or periodicals are transferred with charge to the recipient." This exemption applies to newspapers, shoppers guides and periodicals which are issued at average intervals not exceeding 3 months. It does not apply to advertising supplements that are not newspapers as defined in s. 77.51(8), Stats.
(f) Section 77.51(18) and (22) 77.54(43), Stats., provides that storage and use for purposes of imposing Wisconsin use tax does not include the keeping, retaining or exercising any right or power over a sales and use tax exemption for raw materials
for used for the processing, fabricating or manufacturing into, attachment of, attaching to or incorporation into incorporating into, printed materials to be that are transported outside Wisconsin and thereafter used solely outside Wisconsin.
(5) Wisconsin sales and use tax is not imposed on raw materials that would otherwise be subject to use tax under s. 77.53(1), Stats., purchased by a publisher or printer of printed materials if both of the following conditions are met:
(b) The resulting printed materials will be shipped outside Wisconsin for use transported and used solely outside Wisconsin.
(6) EXEMPT PURCHASERS. Sales of printed material to federal and Wisconsin governmental units, and Wisconsin public schools, and certain nonprofit religious, charitable, educational or scientific organizations holding a certificate of exempt status are exempt under s. 77.54 (9a) or 77.55 (1), Stats. Sales to federal and Wisconsin governmental units and public schools need not be supported by exemption certificates, if a copy of the purchase order from the organization is retained or the governmental unit's certificate of exempt status number is recorded on the bill of sale. Sales to persons nonprofit organizations holding a certificate of exempt status can be shown to be exempt by recording the certificate of exempt status number on the bill of sale.
Note to Revisor: 1) In sub. (3), all quoted statutory material should be in italics.
2) Replace the first note at the end of s. Tax 11.19 with the following:
Note: Section Tax 11.19 interprets ss. 77.51 (8) and (13h), 77.52 (2) (a) 11., 77.54 (2m), (9a), (15), (25) and (43) and 77.55 (1), Stats.
3) In the second note at the end of s. Tax 11.19, remove the word “and" before part (i) and add the following at the end of the note:
; and (j) The sales and use tax exemption for raw materials becoming printed materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27.
SECTION 2. Tax 11.70 (3) (m) is created to read:
Tax 11.70 (3) (m) Raw materials processed, fabricated or manufactured into, attached to or incorporated into printed materials that are transported and used solely outside Wisconsin.
Example: Company A, located in Wisconsin, publishes catalogs it gives away to potential customers. Company A purchases paper from a company who delivers it to a Wisconsin printer that prints the catalogs for Company A. The catalogs are transported and used solely outside Wisconsin.
The paper purchased by Company A for the catalogs is exempt from Wisconsin sales or use tax.
Note to Revisor: 1) At the end of sub. (2)
(b), change the word “Example" to “Examples."
2) In the second example at the end of sub. (2) (c), add the words “by the advertising agency" at the end of the fourth sentence, after “are produced"; also renumber the example from 2 to 3 and add the following new examples:
2) Assume the same facts as Example 1, except that Company C mails 90% of the flyers to customers outside Wisconsin and 10% to customers in Wisconsin.
Ten percent of the total charge to Company C by the advertising agency for the flyers, including the preliminary art, finished art and flyers, is subject to tax.
4) Assume the same facts as Example 3, except that 5 dubs are mailed by the advertising agency to radio stations outside Wisconsin.
Fifty percent of the entire charge by the advertising agency for the production of the master tape and dubs is subject to tax. The remaining 50% is not subject to tax because that portion of the sale took place outside Wisconsin.
3) In the example at the end of sub. (3) (j), change “an advertising agency" to “a Wisconsin advertising agency"; also, change the word “Example" to “
Examples," number the example 1, and add the following new example:
2) Assume the same facts as Example 1, except that Company I provides the paper to the printer, in addition to the finished art.
The charge to Company I by the Wisconsin advertising agency for the preliminary art and finished art is subject to Wisconsin sales tax. The printer is selling a printing service, and not tangible personal property, to Company I. The destined for sale requirement is not met and exemption from tax does not apply.
4) In the first note at the end of s. Tax 11.70, change the zip code from “53708" to “53708-8902."
5) Replace the second note at the end of s. Tax 11.70 with the following:
Note: Section Tax 11.70 interprets ss. 77.51 (14) (intro.) and (h) and (14r), 77.52 (1) and (2) and 77.54 (2), (2m), (6) (b), (25) and (43), Stats.
6) In the third note at the end of s. Tax 11.70, remove the word “and" before part (c) and add the following at the end of the note:
; and (d) The sales and use tax exemption for raw materials for printed materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to 1997 Wis. Act 27.
Initial Regulatory Flexibility Analysis
