Statute(s) interpreted
Statutory authority
Explanation of agency authority
Section
227.11 (2) (a) of the Statutes authorizes the Department to promulgate rules interpreting the provisions of any Statute administered by the Department. Section
560.2055 (5) (f) requires the Department to promulgate rules for implementing and operating section 560.2055, including rules that (1) define tier I and tier II counties and municipalities, (2) establish a schedule of the tax credits that can be claimed for costs incurred to undertake training, (3) establish conditions for revoking a certification of eligibility for tax credits and (4) establish conditions for repayment of the tax credits.
Related statute or rule
Several statutes and other Departmental rules address tax incentives for business development in Wisconsin, but those rules do not include the proposed definitions for tier I and tier II counties and municipalities, and do not specifically include the proposed rule text for earning refundable business tax credits by increasing net employment that either has an annual salary of $20,000 to $100,000 or is accompanied with employee training. Chapter
Comm 100 defines “full-time job" in a manner similar to the proposed definition.
Plain language analysis
The rules in this order include (1) definitions for tier I and tier II counties and municipalities; (2) the eligibility requirements for applicants; (3) the documentation that must be submitted by applicants to become certified as eligible for tax credits for jobs and training, and to receive acceptance of incurred expenses; (3) the Department's response to the submitted documentation and (4) filing a claim with the Department of Revenue for the corresponding tax credit.
Comparison with existing or proposed federal regulations
In researching federal tax incentives, the Department did not find any tax credits at the federal level that are exactly like the jobs tax credit in sections
71.07 (3q),
71.28 (3q),
71.47 (3q) and
560.2055 of the Statutes. The following federal tax credit may apply to some of the activities that may be addressed by the proposed rules, but this federal tax credit is structured differently than the credit in these sections of the Statutes.
Job creation that would be eligible for tax credits under the proposed rules may qualify for the federal consolidated Work Opportunity Tax Credit – which includes tax credits for an employer that hires an individual who is (1) a qualifying Hurricane Katrina employee, (2) a member of a qualifying family with long-term or recent receipt of Temporary Assistance to Needy Families payments, (3) a qualifying food stamp recipient, (4) a qualifying veteran, (5) a qualifying ex-felon, (6) a resident of a designated community, (7) a qualifying summer youth employee, (8) a qualifying recipient of vocational rehabilitative services, or (9) a qualifying recipient of Supplemental Security income.
Comparison with similar rules in adjacent states
Michigan:
Michigan has several tax credit and tax abatement programs targeting specific business activities: development, manufacture and commercialization of advanced batteries; brownfield clean-up; manufacturers seeking defense contracts; promotion of renewable energy operations; tool and die operations; agricultural processing facilities; and forest products processing facilities.
The Michigan Economic Growth Authority Job Creation Tax Credits and Job Retention Tax Credits may be awarded for up to 20 years and up to 100 percent of an amount equal to the salaries and wages and employer-paid health care benefits multiplied by the personal income tax rate.
Minnesota:
Minnesota's Job Opportunity Building Zone program offers a variety of tax exemptions and tax credits to businesses beginning operations in a designated zone, expanding in a zone, relocating to a zone from another state or relocating to a zone from another Minnesota location, if employment is increased by five jobs or 20 percent, whichever is greater, within the first full year of operation in the zone. Businesses may qualify for exemptions to corporate franchise taxes, and income taxes for operators or investors, including capital gains taxes; sales taxes on goods and services used in the zone; property taxes on commercial and industrial improvements; and wind energy production taxes. The program also includes a refundable job credit that is calculated in much the same manner as Wisconsin's tax credit for jobs and training.
Iowa:
Iowa's High Quality Job Creation program offers businesses various combinations of the following: a local property tax exemption of up to 100 percent of the value added to the property for up to 20 years; a refund of state sales, service or use taxes paid to contractors during construction; and an investment credit equal to a percentage of the qualifying investment, amortized over 5 years.
Illinois:
The Illinois Economic Development for a Growing Economy (EDGE) program offers tax credits as high as the amount of tax receipts collected from state income taxes paid by newly-hired or retained employees as pertaining to the project. Each project must add to the export potential of Illinois, involve capital investment of at least $5 million and create at least 25 new jobs, or meet requirements set forth by the Illinois Department of Commerce and Economic Opportunity. EDGE credits are available for up to 10 years for each project. Jobs and capital investments must be maintained for the period in which the credits are claimed.
In addition to a variety of tax exemptions, the Illinois Enterprise Zone program offers an investment credit of 0.5 percent and a jobs credit of $500 per eligible employee hired to work in a zone during a taxable year. Eligible employees are individuals who are certified as economically disadvantaged or as dislocated workers.
Summary of factual data and analytical methodologies
The data and methodology for developing these rules were derived from and consisted of (1) incorporating the criteria in section
560.2055 of the Statutes, which were enacted in
2009 Wisconsin Act 28; and (2) incorporating applicable best practices the Department has developed in administering similar programs for economic development, business development, and tax-credit verification.
Analysis and supporting documents used to determine effect on small business
The primary document that was used to determine the effect of the rules on small business was
2009 Wisconsin Act 28. This Act applies its private-sector requirements only to businesses for which a corresponding tax credit is desired.
Effect on Small Business
The rules are not expected to impose significant costs or other adverse impacts on small businesses because the rules address submittal of documentation, and other activities, only by applicants that choose to pursue tax credits for jobs and training.
Initial regulatory flexibility analysis
Types of small businesses that will be affected by the rules.
These rules may affect any business that elects to pursue tax credits under section
560.2055 of the Statutes for increasing net employment that either has an annual salary of $20,000 to $100,000 or is accompanied with employee training.
Reporting, bookkeeping and other procedures required for compliance with the rules.
A business certified under the rules must enter into a written contract with the Department that establishes the responsibilities which the business will fulfill with regard to the Department's terms and conditions in allocating a tax credit, such as submitting an annual project report to the Department.
Types of professional skills necessary for compliance with the rules.
No new professional skills are necessary for compliance with the rules.
Rules have a significant economic impact on small businesses?
No.
Small business regulatory coordinator
Any inquiries for the small business regulatory coordinator for the Department of Commerce can be directed to Sam Rockweiler, as listed above.
Environmental Impact
Notice is hereby given that the Department has considered the environmental impact of the proposed rules. In accordance with chapter Comm 1, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The Department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the Department has issued this notice to serve as a finding of no significant impact.
Fiscal Estimate
Assumptions used in arriving at fiscal estimate
The rules are not expected to have any significant fiscal effect on the Department because they are not expected to result in any substantial increase in workload.
The rules are not expected to impose any significant costs on the private sector because the rules would only affect businesses that choose to pursue tax credits under section
560.2055 of the Statutes for increasing net employment which either has an annual salary of $20,000 to $100,000 or is accompanied with employee training.
State fiscal effect
None.
Local government fiscal effect
None.
Long-range fiscal implications
None known.
Agency Contact Person
Todd Jensen, Wisconsin Department of Commerce, Bureau of Business Finance, 201 West Washington Avenue, Madison, WI, 53703; telephone: (608) 266-3074; e-mail:
Todd.Jensen@wisconsin.gov.
Notice of Hearing
Regulation and Licensing —
Barbering and Cosmetology Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss.
15.08 (5) (b),
51.30,
146.82,
227.11 (2) and
440.04, Stats., and interpreting s.
440.03, Stats., the Barbering and Cosmetology Examining Board will hold a public hearing at the time and place indicated below to consider an emergency rule and an order adopting permanent rules to amend section
BC 9.02; and to repeal and create Chapter
BC 11, relating to late renewal and continuing education.
Hearing Information
The hearing will be held on:
April 4, 2011
Monday
at 10:00 a.m.
|
Room 121AB
1400 E. Washington Avenue
Madison, WI 53703
|
Copies of Proposed Rule
Copies of this proposed rule are available upon request to Kris Anderson, Paralegal, Department of Regulation and Licensing, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708, or by email at
Kristine1.Anderson@wisconsin.gov.
Appearances at the Hearing
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, Division of Board Services, P.O. Box 8935, Madison, Wisconsin 53708. Written comments must be received by April 4, 2011, to be included in the record of rule-making proceedings.
Submittal of Written Comments
Comments may be submitted to Kristine Anderson, Paralegal, Department of Regulation and Licensing, Division of Board Services, 1400 E. Washington Ave., Room 152, P.O. Box 8935, Madison, WI 53708-8935, or by email to
kristine1.anderson@wisconsin.gov. Comments must be received on or before
April 4, 2011 to be included in the record of rule-making proceedings.
Analysis Prepared by the Department of Regulation and Licensing
Statute(s) interpreted
Statutory authority
Explanation of agency authority
The Barbering and Cosmetology Examining Board is granted the authority under s.
454.12, Stats., to promulgate rules that establish continuing education requirements for licensure. Prior to promulgation of this emergency rule, the board made the determination that this rule-making was necessary to preserve the public health, safety or welfare.
Plain language analysis
This proposed rule-making modifies continuing education requirements for licensure. It also modifies the criteria for the approval of continuing education programs and the types of programs required to be taken for license renewal.
SECTION 1 sets out the maximum number of credits that must be completed for late renewal applicants whose license has not been expired greater than 5 years. The requirements for late renewal is clarified to reflect that if the total number of delinquent continuing education credits exceed 30, then 30 shall be the maximum required for late renewal.
SECTION 2 repeals and recreates ch.
BC 11. Section
BC 11.01 identifies the authority and purpose for ch.
BC 11, Continuing Education. Section
BC 11.02 provides definitions for “biennium," “continuing education," “continuing education credit" or “CEU," “course" or “program," and “safety, sanitation and infection control."
Section
BC 11.03 provides the continuing education requirements for license renewal. This section clarifies the requirement that applicants for renewal licenses must have obtained a minimum of 12 credits of continuing education during the 2-year period immediately preceding the license renewal date. A licensee must continue to obtain the following types and number of credit hours: 2 credit hours reviewing the laws governing their profession; 4 credit hours in safety, sanitation and infection control, and 6 elective credit hours. However, in addition to credits directly related to the provision of services allowed under the applicant's license, credit may also be had for courses related to identifying and reporting domestic abuse. It also clarifies that applicable licensees must complete 6 elective credits for each license held. A Note is added to explain that courses may count under more than one license, and that licensees may be granted credit for business management class.
Section
BC 11.04 creates standards for approval of programs and courses. The rule specifies the criteria necessary for a course to meet requirements for approval which include: programs organized and structured to contribute to licensee's professional competency; a program conducted by individuals or entities that have specialized education, training or experience and are considered qualified concerning the subject matter of the program; a program that fulfills pre-established goals and objectives and provides attendance or completion verification records.
Additional provisions designate universities, technical colleges, state licensed schools, the Wisconsin Barbering and Cosmetology Examining Board, the Department of Regulation and Licensing, and state or national professional organizations recognized by the board as approved providers who will not need prior approval of its programs. Other entities may become approved providers upon application on prescribed department forms and approval. All providers will have to have their law course approved by the department, and may have their approvals revoked at the discretion of the board.
Section
BC 11.05 requires certificates of completion or proof of attendance that must be retained and submitted to the department upon request for audit purposes. Section
BC 11.06 outlines the requirement that completion certificates be retained for a minimum of five years.
Section
BC 11.07 specifies the waiver provisions. It limits waivers to licensees who are actively practicing in the profession and are temporarily unable to comply with the continuing education requirements. The board will have the discretion of granting a full or partial waiver, or granting an extension of time to the applicant. It spells out that applicants must make a written request for waiver and pay the renewal fee prior to the expiration of their license. It further provides that a licensee may not receive a waiver, partial waiver or extension for two consecutive biennium. Lastly, the provision outlines that if a waiver is denied, the licensee may not practice, or must cease practicing, until he or she comes into compliance.
Comparison with existing or proposed federal regulations
There is no existing or proposed federal regulation.
Comparison with similar rules in adjacent states
Illinois:
Continuing education requirements are as follows: Ten hours are required for estheticians, 14 hours for cosmetologists, and 10 hours for nail technicians for each biennial renewal. There are no requirements for barbers.
