Rule-Making Notices
Notice of Hearing
Administration
Notice is hereby given that pursuant to ss.
16.004 (1) and
227.11 (2) (a), Stats., the Department of Administration will hold a public hearing on the emergency rule and proposed permanent rule to amend Chapter
Adm 2, relating to use of state buildings and facilities.
Hearing Information
Date: Friday, February 21, 2014
Time: 2:30 p.m. to 4:30 p.m.
Location: St. Croix Room CR 136
WI Department of Administration
Building
101 East Wilson Street, 1st Floor
Madison, Wisconsin 53713
Appearance at Hearing and Submission of Written Comments
Interested persons are invited to appear at the hearing and present comments on the proposed rule. Persons appearing may make an oral presentation but are also urged to submit facts, opinions and arguments in writing as well. Facts, opinions and argument may also be submitted in writing without personal appearance. Written comments on the proposed rule may be submitted to:
Donna Sorenson
Department of Administration
P.O. Box 7864
Madison, WI 53707-7864
Fax: (608) 267-3842
The deadline for submitting comments to the Department is 4:30 p.m. on February 24, 2014.
Availability of Rules
Analysis prepared by the Department of Administration
Statutes interpreted
Statutory authority
Explanation of agency authority
The department is the managing authority of numerous state properties and is required to “Have charge of, operate and maintain . . . the state capitol building . . . and such other state properties as are designated by law." s.
16.84 (1), Stats. “The department shall promulgate under ch.
227, and shall enforce or have enforced, rules of conduct for property leased or managed by the department." S.
16.846 (1), Stats. Additionally, “the managing authority of any facility owned by the state . . . may permit its use for free discussion of public questions, or for civic, social or recreational activities." s.
16.845 (1), Stats. Further, “Whoever does or attempts an act for which a permit is required under this section without first obtaining a permit may be fined . . . or imprisoned . . . or both." S.
16.845 (1), Stats.
Related statute or rule
Summary and plain language analysis
The objective of the rule is to obtain compliance regarding use of State facilities, including the capitol building. This objective will be achieved by codifying historical department practices and more clearly detailing certain provisions of the administrative code as informed by judicial interpretations.
Section 1 codifies the historical practice of the state capitol police in enforcing the law in legislative areas upon invitation by the Legislature.
See 1971 Act 183.
Section 2 codifies historical categories of permits granted by the Wisconsin state capitol police, defines the categories, and defines “spontaneous event," which is a mechanism allowing for expressive activity in response to unforeseen and newsworthy events.
Section 3 makes clear that although the Wisconsin state capitol police may enforce the law in any area of the building, at the invitation of the legislature, the legislature retains management authority over areas reserved for its use in the capitol building. Additionally, section 3 codifies the historical practice of the Wisconsin state capitol police of granting permits to any person, and not only to any “governmental body or official, or any nonprofit, fraternal, religious, or veterans' organization."
Section 4 codifies historical practices with respect to the grant and denial of permits, and extends those same protections to the new category of events held under advance notices, as providing such protections naturally arises out of the recent settlement agreement. Further, section 4 creates as categories of use `spontaneous events' and `advance notices' for the reasons set forth above. Moreover, section 4 allows for use of the capitol building's rotunda by 12 or fewer persons without notice and without constituting a “spontaneous event" within the meaning of this chapter. Finally, section 4 codifies the department's policy on severance clauses and appeal procedure.
Section 5 codifies the historical practice of the Wisconsin state capitol police of resolving conflicts of use on a first-come first-served basis. This section provides that the department may publish content-neutral guidance limiting or explaining any potential imposition of charges arising out of the use of State facilities. The section codifies the historical practice of the Wisconsin state capitol police of not discriminating on the basis of sexual orientation in the use management of State facilities.
Section 6 provides that permitting requirements for exhibits shall not be applied to persons who simply wear clothing bearing an expressive message, or who simply hold signs bearing an expressive message, provided that the sign is of a certain size.
Section 7 clarifies that a person who creates a hazardous condition is subject to citation under the existing code. Section 7 further clarifies that hazardous conditions can be created by the deployment of not only holiday trees and holiday decorations, but by similar exhibit items that are not related to a holiday.
Section 8 clarifies that there is no conflict between s.
Adm 2.08 (1) and s.
Adm 2.11, in accordance with standard rules of legal interpretation, and places a reasonable limitation on the retention of items by the Wisconsin state capitol police.
Section 9 clarifies existing prohibitions against conducting or participating in events occurring without permits. Prohibition against participating in events is redefined in accordance with recent settlement. Clarity to the sub-section is sought by separating the violations for conducting such events from violations for participating in such events into separate sub-sections. The potential offense of occupying space is clarified by removing excess language from the paragraph. Additionally, introductory statements, which do not constitute elements leading to a citation, are moved to the appropriate introductory clause for the section. Finally, a new paragraph is added, codifying a decibel limitation currently found in policy, and lowering it in accordance with an expert witness report commissioned by the Wisconsin Department of Justice.
Section 10 continues the attempt to clarify existing prohibitions against unauthorized events by simplifying the arrangement and using newly defined terms. Section 10 also improves protections for the public by eliminating an alternative rationale for prosecution.
Section 11 also continues the attempt to clarify existing prohibitions by eliminating language that, substantively, is now located in other portions of this subsection. The result is a sub-section that is less complicated to read and interpret.
Summary of and comparison with, existing or proposed federal regulations
Existing federal regulations vary by agency, state, and facility, and are too numerous to permit meaningful comparative analysis. However, the department notes that no protests or the like are permitted within the United States capitol building, and that persons attempting to do so have been successfully prosecuted under the federal criminal code.
Comparison with rules in adjacent states
All adjacent states have similar administrative code provisions. Illinois requires permits for demonstrations or other events to be submitted at least 48 hours in advance of the use, unless the requestor can prove by a preponderance of the evidence that the cause of the event was unknown or resulted from changed circumstances. Michigan does not permit demonstrations or other activities without written authorization. Michigan also requires written authorization for displays, and requires that such requests “normally" be submitted 30 days in advance. Likewise, Minnesota requires a written permit, with the State and the applicant reaching agreement on topics including, “security, police protection, liability for damages, and cleanup of areas" prior to issuance of a permit. Iowa also requires a written application and approval by written letter or a memorandum of understanding signed by the event director.
Effect on Small business
The proposed rule changes will have no impact upon small businesses.
Initial Regulatory Flexibility Analysis
The proposed rule will not affect small businesses.
Fiscal Estimate
Modification of the existing rules should decrease the costs of gaining compliance with the rules by reducing the number of issues currently subject to litigation. In the long term, modification of existing rules to conform to practice and to expand the legally recognized categories of permitted users should increase the legitimacy of the permitting process for the general public, leading to greater voluntary compliance and reduced costs.
Summary of Economic Impact Analysis
The rule modifications are expected to have no economic impact. A copy of the Economic Impact analysis may be obtained from the agency at no charge by contacting Donna Sorenson at the contact information listed on the first page of this Notice.
Small Business Regulatory Coordinator
Joe Knilans
Telephone: 608-267-7873
Contact Person
Andrew Hitt
Department of Administration
101 E. Wilson Street, 10th Floor
Madison, WI 53702
(608) 266-1741
June 14, 2013.
Notice of Hearing
Agriculture, Trade and Consumer Protection
(DATCP DOCKET # 12-R-05 )
The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announces that it will hold public hearings on a proposed rule relating to the clean sweep program. This rule revises Chapter
ATCP 34, Wis. Admin. Code, related to Wisconsin's “clean sweep" program.
DATCP will hold three public hearings at the times and places shown below.
Hearing Information
Date: Monday, February 17, 2014
Time: 1:00 to 4:00 p.m.
Location: Rooms 8 and 9
University of Wisconsin Cooperative
Extension — Jefferson County
864 Collins Road
Jefferson, WI 53549
Date: Tuesday, February 18, 2014
Time: 1:00 to 4:00 p.m.
Location: Rooms 185 and 158
DNR Service Center
1300 West Clairemont Avenue
Eau Claire, WI 54701
Date: Wednesday, February 19, 2014
Time: 1:00 to 4:00 p.m.
Location: Education Room
Outagamie County Recycling Center
Door #12
1419 Holland Road
Appleton, WI 54911
Hearing impaired persons may request an interpreter for this hearing. Please make reservations for a hearing interpreter by February 3, 2014, by writing to Jane Larson, Division of Agricultural Resource Management, DATCP, P.O. Box 8911, Madison, WI 53708-8911; or by emailing
jane.larson@wisconsin.gov or by telephone at (608) 224-4545. Alternatively, you may contact the DATCP TDD at (608) 224-5058. The hearing facilities are handicap accessible.
Appearance at Hearing, Submission of Written Comments, and Availability of Rules
You can obtain a free copy of this hearing draft rule and related documents, including the economic impact analysis, by contacting Jane Larson at the Wisconsin Department of Agriculture, Trade and Consumer Protection, Division of Agricultural Resource Management, DATCP, 2811 Agriculture Drive, P.O. Box 8911, Madison, WI 53708-8911. You can also obtain a copy by calling (608) 224-4545 or by e-mailing
jane.larson@wisconsin.gov. Copies will also be available at the hearing. To view the hearing draft rule online, go to:
http://adminrules.wisconsin.gov.
Comments or concerns relating to small business may also be addressed to DATCP's small business regulatory coordinator Keeley Moll at the address above, or by email to
keeley.moll@wisconsin.gov, or by telephone at (608) 224-5039.
Analysis Prepared by the Department of Agriculture, Trade and Consumer Protection
This rule modifies ch.
ATCP 34, Wis. Admin. Code, related to Wisconsin's “clean sweep" program. The department of agriculture, trade and consumer protection (“DATCP" or “department") administers the program pursuant to its authority in Chapter
93, Stats. The clean sweep program is designed to distribute grant funds to counties and municipalities. The funds pay for costs associated with collecting and safely disposing of agricultural pesticides, farm chemical waste and household hazardous waste that might otherwise pose a threat to public health or the environment. Program funds are also used to collect unwanted prescription drugs and veterinary drugs from individuals. This rule does not alter the level of available funding for the clean sweep program.
This rule will:
• Update provisions related to grant applications, grant evaluation and approval, grant contracts, reporting requirements, reimbursement procedures, selection of hazardous waste handlers, and other matters to keep up with developments in programs relating to the collection of hazardous wastes.
• Add standards for the statutory prescription drug component of the clean sweep program to the rule.
• Amend the rule to resolve existing conflicts between the statute and rule concerning funding amounts for the grants and to take into consideration the overall needs of grant recipients.
• Reduce paperwork by permitting electronic applications for grants. Make changes to improve the administrative and operational efficiency of the “clean sweep" program.
Statutes interpreted
Statutes Interpreted: Sections
93.55 and
93.57, Stats.
Statutory authority
Explanation of agency authority
DATCP has authority under s.
93.07 (1), Stats., to make regulations as necessary for the proper enforcement of Chapters
93 to
100, Stats., which includes the administration of the clean sweep grant program. Grants go to local governments for the collection of agricultural and household hazardous waste, including prescription drugs, as required under ss.
93.55 and
93.57, Stats. The department considers it necessary to adopt rules to establish the basis for grant determinations in order to effectuate these laws.
Related rules or statutes
Wisconsin statutes and rules relating to the manufacture, distribution, and use of pesticides in Wisconsin are set forth in ss.
94.67 to
94.71, Stats., and chs.
ATCP 29 and
30, Wis. Admin. Code. Waste management is governed by ch.
289, Stats., and ch.
NR 500, Wis. Admin Code. The manufacture, distribution and dispensing of prescription drugs falls under the authority of the Pharmacy Examining Board.
See ch.
450, Stats. “Veterinary drugs" is defined in s.
453.02 (9), Stats. The Uniform Controlled Substances Act sets standards for prescription drugs that are “controlled substances," pursuant to ch.
961, Stats.
Plain language analysis
Under the clean sweep program, DATCP distributes grants to counties and other local governments to assist in funding their hazardous waste collection events and permanent waste collection sites. The clean sweep program was established in 1990 to provide financial assistance to Wisconsin counties to collect unwanted agricultural pesticides. In 2004, the program expanded to provide grants to local governments to collect household hazardous wastes such as acids, flammable chemicals, mercury, lead paint, and solvents. In 2007, Wis. Act 20 was enacted, which authorized the department to include the funding of county, municipal, and regional planning commission programs to collect unwanted prescription drugs, including controlled substances, analgesics, anti-inflammatory drugs, antibiotics, gastrointestinal drugs, and antihistamines. DATCP implemented a pilot prescription drug program to develop standards for issuing grants related to collection of unwanted prescription drugs, and those standards are now incorporated into this proposed rule.
Other changes in the rule are designed to improve the operational and administrative efficiency of the program for the department and local governments that participate in the “clean sweep" program. Since 1990, the program has matured and several current requirements are no longer needed. At the same time, the needs of the grant recipients have changed. These rule revisions address these changes and reflect the current state of hazardous waste collection in Wisconsin.
Rule content
This proposed rule amends ch.
ATCP 34, relating to the clean sweep program. The following provides a summary of the rule changes by section:
Purpose of the rule
The establishment of procedures for making grants to local governments to dispose of unwanted prescription drugs will be added to the “Purpose" section of the rule.
Definitions
The term “unwanted prescription drugs" is added and includes Schedule II to V controlled substances, and all other drugs that can be prescribed for human health needs, including drugs such as analgesics, anti-inflammatory drugs, antibiotics, gastrointestinal drugs, inhalers, and antihistamines. Unwanted prescription drugs also include certain veterinary drugs.
When local governments first decided to collect pesticide and household wastes, they often held one- or two-day collection “events." Since then, many local governments have expanded to multiple collections or have established permanent collection sites that offer convenience for local residents. The rule removes the term “event" and references a project as a “collection."
In this rule, “temporary collection" means a clean sweep project that collects hazardous waste five days or less in a calendar year. A “continuous collection" means a clean sweep project that collects chemicals on six or more days in a calendar year. A “permanent collection" means a clean sweep project that operates at least six months out of the year and includes permanent infrastructure dedicated to clean sweep collections. Comments received during our listening sessions showed a desire to broaden the gap between temporary and continuous collections. Local governments holding temporary collections are still required to use the state hazardous waste contractor as their waste hauler.
Grants to counties and municipalities
• Drug Drop Boxes. Currently, clean sweep grant funds cannot be used to purchase permanent equipment. However, a large expense associated with the collection of unwanted prescription drugs is a drug drop box. These drop boxes are a secure place for residents to dispose of their unwanted prescription and veterinary drugs. The boxes typically are located within law enforcement agencies and are designed in such a way that drugs cannot be removed except by authorized personnel. The rule would allow a local government to request funds for the direct costs associated with the purchase and installation of a drug drop box.
• Disposal of Dual-Hazardous Waste. This proposed rule will allow counties and municipalities to request reimbursement for the disposal of “sharps" that contain medication such as epinephrine auto-injectors (an example is an EpiPen® ) or prefilled syringes. Disposal costs for sharps such as needles or lancets would remain ineligible for reimbursement.
Grant applications
• Grant Solicitation Announcements. This proposed rule expands the methods of announcing a request for proposals for clean sweep grant funds beyond a written announcement.
• Grant Fund Amounts. Ch.
ATCP 34 states that the department shall offer no less than $400,000 for farm chemical waste collection and not less than $200,000 for household hazardous waste collection. In recent years, the demand for the collection and disposal of household hazardous waste has outpaced agricultural pesticides and farm chemical waste. Also, with the statutory addition of grants for unwanted prescription drug collections in 2008, a different allocation of funds among the collection grants is now required. The new statutory language requires the department to offer a minimum of two-thirds of the available funds for household hazardous waste under s.
93.57, Stats. This proposed rule reflects the change in statutory requirements and eliminates the conflict between rule and statute. This change is also supported by the data collected from clean sweeps in recent years. The demand for household hazardous waste disposal is increasing while the demand for agricultural waste disposal is declining. Household waste disposal demand is outpacing agricultural demand by about a 3:1 margin.
• Grant Applications. The current rule requires that grant applications be submitted on a form provided by the department. To keep up with changing and available technology such as electronic or web-based applications, the rule specifies that future applications will be submitted in a manner designated by DATCP.
• Required Information in Applications. Because of the gap between grant submittal and acceptance and the possibility that a grant may not be funded, this rule specifies that applicants no longer have to provide specific dates, locations and facilities for collections. The department will gather that information after grants are awarded. The proposed rule also removes the requirement that an applicant describe its plans for collecting, handling and disposing of chemical waste. Clean sweep collections are not new and local governments and waste haulers have developed much experience since 1990. Unwanted prescription drug collection information will be incorporated into clean sweep applications. Finally, because multi-government collections are quite common as a way to reach more residents and gain efficiencies with collections, applicants no longer need to describe the role of each government participant under this rule.
Evaluating grant applications
Under this proposed rule, the department will modify the criteria used to assess clean sweep grant applications. Early in the program's history, applicants were encouraged to collect farm and household waste and determine what chemicals were of concern in their areas. Now the majority of applicants are experienced project coordinators familiar with local needs and available resources. For some, it is impractical to collect more than one waste type because there is no need. Because of the experience of the local government coordinators and their staff, evaluating an application based on its safety and suitability is no longer necessary. Coordination across multiple governments is encouraged and points are awarded for these types of collections, but it is no longer necessary to place a priority on such coordination.
Grant awards
Farm Waste and Household Waste. This proposed section reflects the changes in the statute for grant awards and removes the discrepancy between statue and rule. The current rule states that the department will annually award grants totaling at least $400,000 for farm chemical waste, while the statute directs that the department to offer a minimum of two-thirds of the available funds for household hazardous waste. This rule corrects the discrepancy by taking into consideration the current appropriation under s.
20.115 (7) (va), Stats.
Grant contracts
• Hazardous Waste Contract. This proposed rule removes the requirement that the written contract between the department and the clean sweep grant recipient include the recipient's contract with its hazardous waste contractor. The department has found that the information provided in the grant applications is sufficient to make awards.
• Limited Funding. Should the amount of grant funds available be insufficient to cover the awarded grants, the department has the ability to cancel one of more of the grants at its discretion.
Collecting waste pesticides from very small quantity generators (VSQGs)
Generally, a “VSQG" is an individual or business who generates limited quantities of waste pesticides and can include certain hardware stores, farm supply stores, cooperatives, municipalities, or commercial pesticide applicators. This proposed section removes the requirement that a county must collect the license status of a VSQG licensed under ch.
ATCP 29. As long as the VSQG's name and address is captured, the department can verify licensure, if necessary.
Hazardous waste
Hazardous Waste Contractor. This proposed section incorporates unwanted prescription drug collection into the rule. It also removes the requirement that hazardous waste contractors selected by grant recipients attend a training session provided by the department. This was a necessary requirement in the early days of the program but is no longer needed since the program participants, including waste contractors, have gained experience and familiarity with the clean sweep program rules.
Reports and payments
Final Report. This proposed section allows for a 45-day extension on the final report deadline. Other required elements of the final report are consolidated within the rule. This proposed section removes the requirement to estimate future collection needs, the timing of collection and suggestions on how to collect chemical waste. This is no longer necessary with a mature program.
Comparison with existing or proposed federal statutes and regulations
The United States Environmental Protection Agency (EPA) administers the Resource Conservation and Recovery Act (RCRA), which includes regulations affecting the collection, movement, and disposal of hazardous agricultural and household waste. EPA has also adopted universal waste management rules under
40 CFR 273. Wisconsin's “clean sweep" grantees and vendors must comply with all applicable RCRA and universal waste provisions. Prescription drugs that are controlled substances are regulated under the federal Controlled Substance Act (
21 USC 801) and the Controlled Substances Import and Export Act (
21 USC 951). Wisconsin's prescription drug “clean sweep" program must comply with these and related federal laws.
Comparison with rules in adjacent states
The surrounding states of Illinois, Iowa, Michigan, and Minnesota also collect unwanted pesticides, household hazardous waste or unwanted prescription drugs. The agencies involved, their funding sources, and distribution of funds vary greatly. Wisconsin is the only state that has one agency overseeing these various types of grants.
Illinois
Illinois offers a grant for agricultural and structural pesticide collections through the Illinois department of agriculture. The Illinois environmental protection agency also offers four one-day collections for household hazardous waste and unwanted drugs, in addition to some county hosted events. Illinois's Prescription Pill and Drug Disposal Fund provides reimbursement to law enforcement agencies for collection, transport and incineration of medicines collected from residential sources.
Iowa
Iowa no longer holds household hazardous waste collection days and eliminated the award of grants to fund those one-day collections. Instead, the Iowa department of natural resources offers Regional Collection Centers (RCCs) that are open year-round. These RCCs take household waste but can also accept agricultural waste at their discretion. In addition to main RCCs, there are satellite RCC sites and mobile collections that contract with an RCC and travel within a county for collections. Iowa offers two kinds of funds: (1) reimbursement funds to cover operating expenses/disposal costs, and (2) establishment funds to help a county set up a permanent site. Unlike Wisconsin's clean sweep program, Iowa allows its funds to be used to build permanent facilities.
Iowa also offers a pharmaceutical disposal program called TakeAway, in which patients or caregivers can bring unwanted or expired medicines into participating TakeAway pharmacies. The pharmacist will dispose of the returned medications (prescription drugs or over-the-counter products) into a waste bin specially designed to safely store discarded pharmaceutical products, along with their packaging. Once filled, the TakeAway system is sealed and shipped to a medication disposal facility where the system and its contents are incinerated at a waste-to-energy facility. Some participating pharmacies also sell TakeAway envelopes, pre-addressed, postage pre-paid large envelopes that can be taken into the home, filled with unused and expired medicine, and mailed through the United States postal service to the disposal facility. Controlled substances must go to law enforcement or one of the United State drug enforcement administration collections.
Michigan
Michigan offers a clean sweep program for agricultural pesticides through its department of agriculture & rural development (MDARD). The Michigan department of environmental quality covers household collections, supported by an EPA grant. No grants are given. MDARD will cover the cost of transportation and disposal costs of pesticides collected at household events.
Minnesota
Minnesota enters into cooperative agreements with counties to collect non-agricultural and agricultural waste pesticides. For those counties without a cooperative agreement, the Minnesota department of agriculture (MDA) holds collections. Agricultural pesticides are collected every other year and household hazardous wastes are collected each year. MDA pays supplies, transportation and disposal costs and $0.25/lb. for “reasonable overhead costs." The Minnesota pollution control agency (MPCA) provides stipends to counties for household hazardous waste collections. Stipends cover about 10 percent of costs and are determined by different formulas. Minnesota does not offer drug grants. Collections, transportation and disposal are overseen by county law enforcement and the counties pay all associated costs.
Summary of factual data and analytical methodologies
To develop this rule, four listening sessions were held throughout Wisconsin. Participants included representatives from local government entities that are current and past grant recipients, many of whom manage county or municipal solid waste programs. Comments were also received from law enforcement agencies that administer unwanted prescription drug collections.
Analysis and supporting documents used to determine effect on small business or in preparation of an economic impact analysis
No supporting documents were used. DATCP relied on information obtained through the listening sessions (See Summary of Data and Analytical Methodologies, above), as well as any comments received through the economic impact analysis comment period.
Effects on Small Business
This rule revision will have no effect on small business. By statute, the department may only award grants under the clean sweep program to local government entities for expenses related to the collection of and disposal of unused agricultural pesticides, household waste, and unwanted prescription drugs. No changes have been made to the current rule that directly would impact small businesses. The proposed rule will continue to benefit certain small businesses such as farmers, farm supply stores, and cooperatives that generate small quantities of waste pesticides per month, since clean sweep collections provide a no- or low-cost method of disposing of agricultural pesticides and other farm chemical waste.
Contact Person
Jane Larson
Division of Agricultural Resource Management, DATCP
P.O. Box 8911, Madison,WI 53708-8911
Telephone: (608) 224-4545.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA 2049 (R 07/2011)
ADMINISTRATIVE RULES
FISCAL ESTIMATE AND
ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original ⍽ Updated
⍽ Corrected
|
Administrative Rule Chapter, Title and Number
|
Chapter ATCP 34, Clean Sweep Program
|
Subject
|
Clean sweep grant program
|
Fund Sources Affected
|
Chapter 20, Stats. Appropriations Affected
|
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG X SEG-S
|
20.115(7) (va)
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
X Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
|
Policy Problem Addressed by the Rule
|
This proposed rule makes changes to improve the administrative and operational efficiency of the “clean sweep" program (ch. ATCP 34, Wis. Admin. Code), which provides grants to local governments for the collection and safe disposal of agricultural pesticides, farm chemical waste and household hazardous waste. This rule (1) updates provisions related to grant applications, grant evaluation and approval, grant contracts, reporting requirements, reimbursement procedures, selection of hazardous waste handlers, and other matters to keep up with developments in programs relating to the collection of hazardous waste; (2) adds standards for the statutory prescription drug component of the clean sweep program to the rule; (3) amends the rule to resolve existing conflicts between the statute and rule concerning funding amounts for the grants and to take into consideration the overall needs of grant recipients; and (4) reduces paperwork by permitting electronic applications for grants. This rule does not alter the level of available funding for the clean sweep program.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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Effects on Specific Businesses and Business Sectors
This proposed rule revision awards grants only to local government entities for expenses related to clean sweep collections. Accordingly, the rule does not directly impact businesses or business sectors. The funding of local governments' waste disposal programs comes from other sources besides the clean sweep program, including the local governments themselves. The proposed rule will continue to benefit certain small businesses such as farmers, farm supply stores, and cooperatives that generate small quantities of waste pesticides per month, since clean sweep collections provide a no- or low-cost method of disposing of agricultural pesticides, unwanted prescription drugs, certain veterinary drugs, and farm chemical waste.
Local Governments
The grants provided under the current clean sweep program assist local governments and tribal nations that are eligible to apply for and receive clean sweep grants. The grants are used to reimburse eligible costs related to
the collection and proper disposal of hazardous waste, unused agricultural chemicals, and unwanted prescription drugs. Proposed rule changes would streamline the application process and provide administrative and operational efficiencies.
Public Utility Rate Payers
This rule will have no impact on utility rate payers as a group.
State's Economy
While it is difficult to assess the rule's specific impact on the state's economy as a whole, the overall impact is expected to be negligible due to the fact that the amount of funding available for grants under the clean sweep program will not change under the proposed rule.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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Benefits
The rule will benefit local governments, as inconsistencies between the statute and rule would be addressed and greater efficiency and streamlining of the grant application process will occur. Since 1990, the program has matured, and the department has found that certain requirements are no longer necessary now that the waste collection programs and procedures are well-established. The rule will also reduce paperwork permitting electronic submittal for grant applications. The general public benefit will continue to benefit from a program that offers a safe no- or low-cost disposal option for certain hazardous wastes and unwanted medications.
Alternatives
If DATCP takes no action, current rules will remain in effect. However, the current rules are outdated and inconsistent in certain respects. This rule would create permanent rules concerning the prescription drug component of the program and allow for the modernization and streamlining of the “clean sweep" program overall.
|
Long Range Implications of Implementing the Rule
|
Certain non-essential requirements in the current clean sweep grant applications will be eliminated, which will simplify the application process for local governments that apply for grants in the future. The conflict in minimum spending amounts between the current statute and rule due to a shift in the statutory appropriation in recent years will be corrected. Long-term, the rule will continue to benefit local governments, farmers, businesses, and the general public by providing funding to assist with clean sweep collection and disposal of unwanted potentially hazardous products.
|
Compare With Approaches Being Used by Federal Government
|
The United States Environmental Protection Agency (EPA) administers the Resource Conservation and Recovery Act (RCRA), which includes regulations affecting the collection, movement, and disposal of hazardous agricultural and household waste. EPA has also adopted universal waste management rules under 40 CFR 273. Wisconsin's “clean sweep" grantees and vendors must comply with all applicable RCRA and universal waste provisions.
Prescription drugs that are controlled substances are regulated under the federal Controlled Substance Act (21 USC 801) and the Controlled Substances Import and Export Act (21 USC 951). Wisconsin's prescription drug “clean sweep" program must comply with these and related federal laws.
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Surrounding states also collect unwanted pesticides, household hazardous waste or unwanted prescription drugs. The agencies involved, their funding sources, and distribution of funds vary greatly. Wisconsin is the only state that has one agency overseeing these types of grants.
Illinois
Illinois offers a grant for agricultural and structural pesticide collections through the Illinois Department of Agriculture. The Illinois Environmental Protection Agency also offers four, one-day collections for household hazardous waste and unwanted drugs, in addition to some county-hosted events. Illinois'
Prescription Pill and Drug Disposal fund provides reimbursement to law enforcement agencies for collection, transport and incineration of medicines collected from residential sources.
Iowa
Iowa no longer holds hazardous waste collection days and eliminated the award of grants to fund those one-day collections. Instead, the Iowa Department of Natural Resources offers Regional Collection Centers (RCCs) that are open year-round. These RCCs take household waste but can also accept agricultural waste at their discretion. In addition to main RCCs, there are satellite RCC sites and mobile collections that contract with an RCC and travel within a county for collections. Iowa offers two kinds of funds: (1) reimbursement funds to cover operating expenses/disposal costs, and (2) establishment funds to help a county set up a permanent collection site. Unlike Wisconsin's clean sweep program, Iowa allows its funds to be used to build permanent facilities.
Iowa also offers a pharmaceutical disposal program called TakeAway in which patients or caregivers can bring unwanted or expired medicines into participating TakeAway pharmacies. The pharmacist will dispose of the returned medications (prescription drugs or over-the-counter products) into a waste bin specially designed to safely store discarded pharmaceutical products, along with their packaging. Once filled, the TakeAway system is sealed and shipped to a medication disposal facility where the system and its contents are incinerated at a waste-to-energy facility. Some participating pharmacies also sell TakeAway envelopes. They are pre-addressed, postage pre-paid large envelopes that can be taken into the home, filled with unused and expired medicine, and mailed through the United States Postal Service to the disposal facility. Controlled substances must go to law enforcement or one of the United States Drug Enforcement Administration collections.
|
Michigan
Michigan offers a clean sweep program for agricultural pesticides through its Department of Agriculture & Rural Development (MDARD). The Michigan Department of Environmental Quality covers household collections, supported by an EPA grant. No grants are given. MDARD will cover the cost of transportation and disposal costs of pesticides collected at household events.
Minnesota
Minnesota enters into cooperative agreements with counties to collect non-agricultural and agricultural waste pesticides. For those counties without a cooperative agreement, the Minnesota Department of Agriculture (MDA) holds collections. Agricultural pesticides are collected every other year and household hazardous wastes are collected each year. MDA pays supplies, transportation and disposal costs and $0.25/lb. for “reasonable overhead costs." The Minnesota Pollution Control Agency (MPCA) provides stipends to counties for household hazardous waste collections. Stipends cover about 10 percent of costs and are determined by different formulas. Minnesota does not offer drug grants. Collections, transportation and disposal are overseen by county law enforcement and counties pay all associated costs.
|
Public comments including comments in Response to Web Posting
|
The department solicited comments on the economic impact analysis for this proposed rule from interested parties and sought responses by posting both on DATCP's website and also the state's rules website. Three comments were received during this period, but all comments had to do with revisions to the proposed rule and not to the economic impact analysis. The department will review all rule revision comments received during the upcoming public hearing and comment portion of the rulemaking process.
|
Name and Phone Number of Contact Person
|
Jane Larson, Clean Sweep Program Manager, DATCP
Telephone: 608-224-4545
E-mail: jane.larson@wisconsin.gov
|
Notice of Hearing
Public Instruction
NOTICE IS HEREBY GIVEN That pursuant to s.
115.29 (4), Stats., and interpreting s.
115.29 (4), Stats., the Department of Public Instruction will hold a public hearing as follows to consider the revision of Chapter
PI 5, relating to high school equivalency diplomas and certificates of general development. This hearing will be regarding both the PI 5 emergency and permanent rule changes.
Hearing Information
Date: Monday, February 24, 2014
Time: 3:00 to 5:00 p.m.*
Location: GEF 3 Building
125 South Webster St.
Room 041
Madison, WI
*If no speakers are remaining, the hearing will conclude early (but no earlier than 3:30 p.m.). Those that would like to testify should plan to be there at the beginning of the hearing. For those who cannot attend the public hearing, comments received by the Department will be given the same weight as testimony.
The hearing site is fully accessible to persons with disabilities. If you require reasonable accommodation to access the meeting, please call Katie Schumacher at (608) 267-9127, or leave a message with the Teletypewriter (TTY) at (608) 267-2427, at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.
Place Where Comments Are to Be Submitted and Deadline for Submission
Agency Contact Person
Katie Schumacher, Administrative Rules Coordinator and Small Business Regulatory Coordinator,
Katie.Schumacher@dpi.wi.gov, Department of Public Instruction, 125 South Webster Street, P.O. Box 7841, Madison, WI 53707-7841.
Analysis by the Department of Public Instruction
Statute interpreted
Statutory authority
Explanation of agency authority
115.29 General powers. The state superintendent may:
(4) High school graduation equivalency.
(a) Grant declarations of equivalency of high school graduation to persons, if in the state superintendent's judgment they have presented satisfactory evidence of having completed a recognized high school course of study or its equivalent. The state superintendent may establish the standards by which high school graduation equivalency is determined. Such standards may consist of evidence of high school courses completed in high schools recognized by the proper authorities as accredited, results of examinations given by or at the request of the state superintendent, successful completion of correspondence study courses given by acceptable correspondence study schools, a general educational development certificate of high school equivalency issued by an agency of the U.S. government, course credits received in schools meeting the approval of the state superintendent or other standards established by the state superintendent.
(b) Promulgate rules establishing fees for issuing a declaration of equivalency of high school graduation or a general educational development certificate under par. (a). The rules may provide exemptions from the fees based on financial need.
Related statute or rule
N/A.
Plain language analysis
PI 5 governs the issuance of high school completion credentials by the State Superintendent, which includes the certificate for completion of the General Educational Development (GED) Test and the High School Equivalency Diploma (HSED). This rule change is designed to align the rule with changes in the GED Test. The current rule references the number of subtests and the passing scores for the GED, which will be changing in January 2014 when a new test is implemented by GED Testing Service. Additionally, technical changes are needed to align the rule with statute.
The following changes were made to PI 5:
• Changed the name of the corporation who owns the test based on changes in incorporation for GED Testing Service, LLC.
• Changed the number of subtests from 5 to 4 because the new test only has 4 subtests.
• Corrected the language to indicate that the passing score will now be 150 on each of the 4 subtests and that there will be no average score to be attained.
Summary of, and comparison with, existing or proposed federal regulations
N/A.
Comparison with rules in adjacent states
No information.
Summary of factual data and analytical methodologies
This rule change is designed to align the rule with changes in the GED Test and with current statute.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact report
The GED Test and the HSED credentials are used by persons applying for employment or post-secondary education to demonstrate high school completion. A well educated work force that is college and career ready is critical to the economic prosperity of the citizens of Wisconsin. Aligning the rule to the changes in the GED test facilitates this process.
Anticipated Costs Incurred by Private Sector
There is not expected to be a cost to the private sector.
Effect on Small Business
The proposed rules will have no economic impact on small businesses, as defined in s.
227.114 (1), Stats.
Agency Contact Person
Beth Lewis
Alternative Education and GED/HSED Administrator
Wisconsin Department of Public Instruction
Telephone: (608)267-1062
Katie Schumacher
Budget and Policy Analyst
Wisconsin Department of Public Instruction
Telephone: (608) 267-9127
Text of Rule
SECTION 1. PI 5.02 (6) and (11m) are amended to read:
PI 5.02
(6) “General educational development test" means the test developed by the American council on education
GED Testing Service, and administered in Wisconsin at testing sites approved by the state superintendent and the American council on education. GED Testing Service.
(11m) “Subtest" means one of the 5 4 content area tests given under the general educational development test.
SECTION 2. PI 5.035 (6) is amended to read:
PI 5.035
(6) Based on the process specified under sub. (3), the state superintendent establishes the general educational development subtest and test passing scores as follows:
(a) A a minimum standard score of no less than 410150 shall be required on each subtest in the battery of 5
4 subtests; and.
(b) A total average score of the 5 subtests may not be less than 450.
SECTION 3. PI 5.04 is amended to read:
PI 5.04
The state superintendent shall grant a certificate of general educational development to a person who meets the requirements under s.
PI 5.03 and completes the general educational development test with a passing score on each subtest
and a passing average score as determined by the state superintendent.
SECTION 4. EFFECTIVE DATE:
The proposed rules contained in this order shall take effect on the first day of the month commencing after the date of publication in the Wisconsin Administrative Register, as provided in s.
227.22 (2) (intro.), Stats.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA 2049 (R 07/2011)
ADMINISTRATIVE RULES
FISCAL ESTIMATE AND
ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original ⍽ Updated
⍽ Corrected
|
Administrative Rule Chapter, Title and Number
|
PI 5, High School Equivalency Diplomas and Certificates of General Educational Development
|
Subject
|
Aligning the Rule with Changes in the GED Test
|
Fund Sources Affected
|
Chapter 20, Stats. Appropriations Affected
|
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
X State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
|
Policy Problem Addressed by the Rule
|
PI 5 governs the issuance of high school completion credentials by the State Superintendent, which includes the certificate for completion of the General Educational Development (GED) Test and the High School Equivalency Diploma (HSED). This rule change is designed to align the rule with changes in the GED Test. The current rule references the number of subtests and the passing scores for the GED, which will be changing in January 2014 when a new test is implemented by GED Testing Service. Additionally, technical changes are needed to align the rule with statute.
The following changes were made to PI 5:
•Changed the name of the corporation who owns the test based on changes in incorporation for GED Testing Service, LLC.
•Changed the number of subtests from 5 to 4 because the new test only has 4 subtests.
•Corrected the language to indicate that the passing score will now be 150 on each of the 4 subtests and that there will be no average score to be attained.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
Local:
None. These are technical changes to the GED Test.
State:
None. These are technical changes to the GED Test.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
This rule change will align PI 5 with changes in the GED Test. This will avoid possible confusion because the rule will be consistent with the current version of the GED Test.
|
Long Range Implications of Implementing the Rule
|
PI 5 will be consistent with the current version of the GED Test.
|
Compare With Approaches Being Used by Federal Government
|
No information.
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
No information.
|
Name and Phone Number of Contact Person
|
Katie Schumacher, Department of Public Instruction Administrative Rules Coordinator, (608) 267-9127.
|
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN That, pursuant to ss.
71.05 (6) (b) 47.e.,
71.28 (9s) (d) 2.,
71.47 (9s) (d) 2.,
73.03 (69) (c),
73.15 (3),
71.80 (1) (c), and
77.96 (4), Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapters
Tax 2 and
3, relating to income and franchise tax provisions.
Hearing Information
Date: Tuesday, February 11, 2014
Time: 9:00 a.m.
Location: Events Room
State Revenue Building
2135 Rimrock Road
Madison, Wisconsin 53713
Handicap access is available at the hearing location.
Appearances at the Hearing and Submittal of Written Comments
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than February 11, 2014, and will be given the same consideration as testimony presented at the hearing.
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis by the Department of Revenue
Statutes interpreted
Sections
71.05 (1) (c) 11. and
(6) (b) 47.,
71.07 (3n) and
(5i) (b),
71.28 (3n),
(5i) (b), and
(9s),
71.47 (3n),
(5i) (b), and
(9s),
71.82 (1) (b),
71.90 (1),
73.03 (69), and subch.
VII of ch. 77, Stats.
Statutory authority
Explanation of agency authority:
Section
73.03 (69) (c), Stats., provides “[t]he department may promulgate rules for the administration of this subsection." This provision applies to the creation of s.
Tax 2.986.
Section
73.15 (3), Stats., provides “[t]he department of revenue shall promulgate rules
…" This provision applies to the repeal of s.
Tax 2.985.
Under s.
71.80 (1) (c), Stats., the department may make such regulations as it shall deem necessary in order to carry out chapter 71 of the Wisconsin Statutes, relating to income and franchise taxes. This provision applies to the revision of ss.
Tax 2.88,
2.99, and
3.095.
Section
77.96 (4), Stats., provides that the authority under s.
71.80 (1) (c), Stats., applies to the economic development surcharge. This provision applies to the revision to s.
Tax 2.32.
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
The proposed rule makes the following changes:
•
Revises ss.
Tax 2.32 and
3.01 to reflect that, for taxable years beginning after December 31, 2012, the economic development surcharge does not apply to individuals, estates, trusts, partnerships, and limited liability companies treated as partnerships.
•
Revises s.
Tax 2.88 to reflect, effective July 2, 2013, the reduction in the rate of refund interest from 9% to 3%.
•
Revises s.
Tax 2.957 to reflect that the relocated business credit and deduction may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013.
• Repeals s.
Tax 2.985 to reflect that the electronic medical records credit may not be claimed for taxable years beginning after December 31, 2013.
•
Creates s.
Tax 2.986 to administer the registration of “qualified Wisconsin businesses" for purposes of the capital gains exclusion in s.
71.05 (25), Stats., and the income tax deferral in s.
71.05 (26), Stats.
•
Revises s.
Tax 2.99 to reflect that the dairy and livestock farm investment credit may not be claimed for taxable years beginning after December 31, 2013.
•
Revises s.
Tax 3.095 to reflect that, effective for taxable years beginning after December 31, 2012, certain interest from bonds issued by the Wisconsin Health and Educational Facilities Authority is exempt.
•
Revises ss.
Tax 3.01 and
3.05 to correct a web address and a statutory reference.
Summary of, and comparison with, existing or proposed federal regulation
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
The 2013-2014 Legislative session has made various changes to Wisconsin's income and franchise tax provisions. The department has created this proposed rule order to reflect these statutory changes. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business
This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated Costs Incurred by Private Sector
This rule order does not have a fiscal effect on the private sector.
Effect on Small Business
This rule order does not affect small business.
Agency Contact Person
Text of Rule
SECTION 1. Tax 2.32 (1) (Note) is amended to read:
Tax 2.32 (1) (Note) For any taxable year years beginning before January 1, 2013, an economic development surcharge is imposed on: (a) individuals, estates, trusts, statutory employees and partnerships that have at least $4,000,000 in gross receipts from a trade or business for the taxable year; (b) corporations and insurers that have at least $4,000,000 in gross receipts from all activities for the taxable year; and (c) individuals, estates, trusts and partnerships engaged in farming that have at least $4,000,000 in gross receipts from farming for the taxable year. For taxable years beginning on or after January 1, 2013, an economic development surcharge is only imposed on corporations and insurers that have at least $4,000,000 in gross receipts from all activities for the taxable year.
SECTION 2. Tax 2.32 (2) (e) to (h) and (3) (Note 1) are repealed.
SECTION 3. Tax 2.88 (3) (a) and (4) are amended to read:
Tax 2.88 (3) (a) Any refund of individual income or corporate franchise or income taxes, where the tax being refunded is from a return which has a filing due date on or after November 1, 1975, shall include interest at the rate of 9% 3% per year from the due date of the return to the date paid by the department, except as provided in par. (b).
(4)
Interest on deposit of contested taxes. Any refund of an amount deposited with the department pursuant to s.
71.90 (1), Stats., shall include interest at the rate of
9% 3% per year from the date the funds were deposited to the date refunded
, provided the funds being refunded are from a return which has a filing due date on or after November 1, 1975.
SECTION 4. Tax 2.88 (5) (Note) is created to read:
Tax 2.88 (5) (Note)
Note: 2013 Wis. Act 20 reduced the rate of interest on refunds of taxes and refunds of the deposit of contested taxes from 9% to 3%. The 3% rate applies to refunds paid on or after July 2, 2013, regardless of the taxable periods to which the refunds pertain.
SECTION 5. Tax 2.957 (7) (title) is amended to read:
Tax 2.957 (7) (title) Limitation
Limitations on credit and deduction.
SECTION 6. Tax 2.957 (7) is renumbered Tax 2.957 (7) (a).
SECTION 7. Tax 2.957 (7) (b) is created to read:
Tax 2.957 (7) (b) The credit or deduction under this section may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013.
SECTION 8. Tax 2.985 is repealed.
SECTION 9. Tax 2.986 is created to read:
Tax 2.986
Registration of a business under s. 73.03 (69), Stats. (1)
Purpose. This section establishes the method of valuing property and the registration deadline for purposes of s.
73.03 (69), Stats.
(2)
Definition. In this section, "doing business in this state" has the meaning given in s.
71.22 (1r), Stats.
(3)
Method of valuing property. For purposes of s.
73.03 (69) (b) 2., Stats., real and tangible personal property owned by the business shall be valued at its original cost and real and tangible personal property rented by the business shall be valued at an amount equal to the annual rental paid by the business, less any annual rental received by the business from sub-rentals, multiplied by 8.
(4)
Registration deadline. (a) Except as provided in par. (b), a business shall register with the department under s.
73.03 (69), Stats., on or before the close of the calendar year for which the business desires registration. A business may not be registered for a calendar year if the registration is not within the time provided in this subsection.
(b) A business that desires registration for the calendar year in which it begins doing business in this state shall register with the department during the following calendar year.
Example: Business A begins doing business in Wisconsin on March 8, 2014. Business A must register with the department for calendar year 2014 between January 1, 2015, and December 31, 2015.
SECTION 10. Tax 2.99 (1) (Note) is created to read:
Tax 2.99 (1) (Note)
Note: Sections
71.07 (3n),
71.28 (3n), and
71.47 (3n), Stats., were revised by
2013 Wis. Act 20 to provide the credit under this section may not be claimed for taxable years beginning on or after January 1, 2014.
SECTION 11. Tax 3.01 (4) (c) 8. (Note) and (e) 4.b. are amended to read:
Tax 3.01 (4) (c) 8. (Note) Financial Accounting Standards Board Interpretation number 48 is available on the Financial Accounting Standards Board's web site at
http://www.fasb.org/pdf/fin%2048.pdf www.fasb.org.
(e) 4.b. The Wisconsin economic development surcharge, which is imposed on
partnerships and tax-option (S) corporations pursuant to s.
77.93 (1), (3), and (5), Stats.
SECTION 12. Tax 3.05 (6) is amended to read:
SECTION 13. Tax 3.095 (2) (e) and (4) (a) 21. are created to read:
Tax 3.095 (2) (e) “WHEFA" means "Wisconsin Health and Educational Facilities Authority."
(4) (a) 21. WHEFA bonds or notes, if the bonds or notes are issued for the benefit of a person who is eligible to receive the proceeds of bonds or notes from another entity for the same purpose for which the bonds or notes are issued and the interest income received from the other bonds or notes is exempt from taxation under subch.
I of ch. 71, Stats.
SECTION 14. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s.
227.22 (2) (intro.), Stats.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original ⍽ Updated ⍽ Corrected
|
Administrative Rule Chapter, Title and Number
|
Chapters Tax 2 and 3 — Income taxation, returns, records, gross income, deductions, exclusions, and exemptions
|
Subject
|
Income and franchise tax provisions
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
|
Policy Problem Addressed by the Rule
|
The rule does not create or revise policy, other than to reflect current law and department policy.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
As indicated in the attached fiscal estimate, the proposed rule is intended to reflect and clarify existing law and does not impose any additional fiscal impact.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapters Tax 2 and 3 will be incomplete in that they will not reflect current law or department policy.
|
Long Range Implications of Implementing the Rule
|
No long-range implications are anticipated.
|
Compare With Approaches Being Used by Federal Government
|
N/A
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
N/A
|
FISCAL ESTIMATE FORM
|
|
2013 Session
|
X ORIGINAL ⍽ UPDATED
|
LRB #
|
|
|
INTRODUCTION #
|
|
⍽CORRECTED ⍽ SUPPLEMENTAL
|
Admin. Rule #
|
to be assigned
|
Subject
|
Proposed order of the Department of Revenue relating to income and franchise tax provisions
|
Fiscal Effect
|
State: X No State Fiscal Effect
Check columns below only if bill makes a direct appropriation or affects a sum sufficient appropriation
⍽ Increase Existing Appropriation
⍽ Increase Existing Revenues
⍽ Decrease Existing Appropriation
⍽ Decrease Existing Revenues
⍽ Create New Appropriation
|
⍽ Increase Costs — May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No
⍽Decrease Costs
|
Local: X No Local Government Costs
|
1. ⍽ Increase Costs
|
3. ⍽ Increase Revenues
|
5. Types of Local Governmental Units Affected:
|
⍽ Permissive Mandatory
|
⍽ Permissive Mandatory
|
⍽ Towns ⍽ Villages
⍽ Cities
|
2. ⍽ Decrease Costs
|
4. ⍽ Decrease Revenues
|
⍽ Counties ⍽ Others
|
_______
|
⍽ Permissive Mandatory
|
⍽Permissive Mandatory
|
⍽ School Districts ⍽ WTCS Districts
|
Fund Sources Affected
⍽ GPR
⍽ FED ⍽
PRO ⍽ PRS
⍽ SEG ⍽
SEG-S
|
Affected Ch. 20 Appropriations
|
Assumptions Used in Arriving at Fiscal Estimate:
The proposed rule makes the following changes:
•Revises s
. Tax 2.32 to reflect that, for taxable years beginning after December 31, 2012, the economic development surcharge does not apply to individuals, estates, trusts, partnerships, and limited liability companies treated as partnerships.
•Revises s
. Tax 2.88 to reflect, effective July 2, 2013, the reduction in the rate of refund interest from 9% to 3%.
•Revises s
. Tax 2.957 to reflect that the relocated business credit and deduction may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013.
•Repeals s
. Tax 2.985 to reflect that the electronic medical records credit may not be claimed for taxable years beginning after December 31, 2013.
•Creates s
. Tax 2.986 to administer the registration of "qualified Wisconsin businesses" for purposes of the capital gains exclusion in s
. 71.05 (25), Stats., and the income tax deferral in s
. 71.05 (26), Stats.
•Revises s
. Tax 2.99 to reflect that the dairy and livestock farm investment credit may not be claimed for taxable years beginning after December 31, 2013.
•Revises s
. Tax 3.095 to reflect that, effective for taxable years beginning after December 31, 2012, certain interest from bonds issued by the Wisconsin Health and Educational Facilities Authority is exempt.
These changes reflect current law enacted during the 2013-2014 Legislative session. The rules are intended to reflect and clarify existing law and do not impose any additional fiscal impact.
Notice of Hearing
Revenue
NOTICE IS HEREBY GIVEN That, pursuant to ss.
77.65 (3) and
227.11 (2) (a), Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapter
Tax 11, relating to sales and use tax provisions.
Hearing Information
Date: Tuesday, February 11, 2014
Time: 2:00 p.m.
Location: Events Room
State Revenue Building
2135 Rimrock Road
Madison, Wisconsin 53713
Handicap access is available at the hearing location.
Appearances at the Hearing and Submittal of Written Comments
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than February 11, 2014, and will be given the same consideration as testimony presented at the hearing.
Dale Kleven
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis by the Department of Revenue
Statutes interpreted
Sections
77.51 (2d),
(10f),
(11m),
(12m), and
(15b),
77.52 (2) (a) 6. and
11.,
77.522 (4) (a) 9., and
77.54 (9) (a),
(57),
(57d),
(59),
(60), and
(61), Stats.
Statutory authority
Explanation of agency authority
Section
77.65 (3), Stats., provides “[t]he department may promulgate rules to administer this section
…"
Section
227.11 (2) (a), Stats., provides “[e]ach agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute..."
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
The rule (1) reflects law changes in
2013 Wisconsin Act 20, (2) corrects two errors in current rule provisions, and (3) deletes an obsolete reference.
a. Custom farming services. Reflects the creation of s.
77.51 (2d), Stats., to provide that “custom farming services" includes services performed by veterinarians to farm livestock or work stock used exclusively in the business of farming. This requires updates to the provisions of ss.
Tax 11.12 and
11.61.
b. “Drugs." In s.
Tax 11.20 (3) (a) 2., reflects the amendment to s.
77.54 (57) (b) 4., Stats., to replace “medicines" with “drugs" so the rule correctly reflects the updated exemption.
c. Health Insurance Risk-Sharing Plan Authority. Reflects the amendment to s.
77.54 (9) (a), Stats. Due to the dissolution of the Health Insurance Risk-Sharing Plan and Authority, the exemption for sales made to the authority is being rescinded. This requires updates to ss.
Tax 11.04 (1),
11.05 (4) (a), and
11.49 (2) (b).
d. Lump sum contracts. Reflects the creation of the exemption in s.
77.54 (60), Stats. This provision exempts certain property sold by a contractor as a part of a lump sum contract and deems the contractor the consumer of such property, with exception. Amendments are needed to s.
Tax 11.68 (7) (b) and the examples following it.
e. “Place of primary use." In s.
Tax 11.66 (1) (u), reflects the amendments to s.
77.522 (4) (a) 9., Stats., so the definition of “place of primary use" in the rule is the same as current law. Removes s.
Tax 11.66 (u) 1. and 2. as these are included in the amended definition.
f. “Prepaid wireless calling service." In s.
Tax 11.66 (1) (x), reflects the amendments to s.
77.51 (10f), Stats., so the definition of “prepaid wireless calling service" in the rule is the same as current law.
g. Printing exemptions. Reflects the creation of s.
77.54 (61), Stats. This requires updates to the provisions of s.
Tax 11.56.
h. Property transferred incidentally with a taxable service. Amends the first note at the end of s.
Tax 11.48 and the first note at the end of s.
Tax 11.67 to reference s.
77.52 (21), Stats.
j.
Qualified research and animal raising. Reflects the repeal of s.
77.54 (57) (b) 1. and
2., Stats., the renumbering of s.
77.54 (57) (a) 1f., Stats., to s.
77.51 (1c), Stats., the renumbering of s.
77.54 (57) (a) 1m., Stats., to s.
77.51 (1d), Stats., the renumbering of s.
77.54 (57) (a) 4., Stats., to s.
77.51 (10rn), Stats., the amending of s.
77.54 (57) (a) 5.and
(b) 4., Stats., and the creation of s.
77.54 (57d), Stats. This requires updates to the provisions of s.
Tax 11.20.
k.
Self-service laundry machines. Reflects the amendment to s.
77.52 (2) (a) 6., Stats. Receipts from self-service laundry machines that are operated by tokens and magnetic cards are no longer subject to sales and use tax. This requires an update to s.
Tax 11.52 (5) (a).
l.
Services resulting in advertising and promotional direct mail. Reflects the amendment to s.
77.52 (2) (a) 11., Stats. The sale of advertising and promotional direct mail became exempt from sales and use tax effective July 1, 2013, pursuant to
2011 Wis. Act 32. The amendment of s.
77.52 (2) (a) 11., Stats., provides that the services of producing, fabricating, processing, printing, or imprinting that result in advertising and promotional direct mail are also not taxable. This requires updates to ss.
Tax 11.19 (2) (a),
11.56 (7) (bm), and
11.70 (2) (e).
m. “
Sales price" and "purchase price."
• In s.
Tax 11.26 (3), reflects the amendments to s.
77.51 (12m) (a) and
(15b) (a), Stats., along with the creation of s.
77.51 (12m) (b) 3m. and
(15b) (b) 3m., Stats., to exclude from “sales price" and “purchase price" taxes imposed on the seller that are separately stated that the seller may, but is not required to, pass on and collect from the user or consumer.
• Includes “fees and charges" as an addition to taxes in several parts of the rule to make it clear that taxes, fees and charges are covered under this rule.
•
Amends s.
Tax 11.26 (2) to include “regardless of whether they are separately stated on the invoice, bill of sale, or other similar document given by the seller to the purchaser," for taxes, fees and charges included in sales price and the purchase price.
•Amends s.
Tax 11.26 (2) (c) to include “and ammunition" after firearms to the list of federal excise taxes.
•Amends the list of taxes, fees, and charges included and excluded from “sales price" and “purchase price" contained s.
Tax 11.26 (2) and
(3)
o.
Correct error. Amends s.
Tax 11.39 (1) (b), to correct a typographical error. This provision quotes the law and is needed for accuracy.
Summary of, and comparison with, existing or proposed federal regulation
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
2013 Wisconsin Act 20 made numerous changes to Wisconsin's sales and use tax laws. The department has created this proposed rule order to reflect these statutory changes. No other data was used in the preparation of this proposed rule order or this analysis.
Analysis and supporting documents used to determine effect on small business
This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated Costs Incurred by Private Sector
This proposed rule does not have a fiscal effect on the private sector.
Effect on Small Business
This proposed rule does not affect small business.
Agency Contact Person
Please contact Dale Kleven at (608) 266-8253 or
dale.kleven@revenue.wi.gov, if you have any questions regarding this proposed rule.
Text of Rule
SECTION 1. Tax 11.04 (1) is amended to read:
Tax 11.04 (1)
Definition. In this rule, “exempt entity" means a person qualifying for an exemption under s.
77.54 (9a) or
77.55 (1), Stats. Section
77.54 (9a), Stats., provides an exemption for sales to this state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation,
the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town or school district in this state; a county-city hospital established under s.
66.0927, Stats.; a sewerage commission organized under s.
281.43 (4), Stats., or a metropolitan sewerage district organized under ss.
200.01 to
200.15 or
200.21 to
200.65, Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s.
66.0823, Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s.
613.80 (2), Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation; a local exposition district under subch.
II of ch. 229, Stats.; a local cultural arts district under subch.
V of ch. 229, Stats.; a cemetery company or corporation described under section
501 (c)
13 of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation. Section
77.55 (1), Stats., provides an exemption for sales to the United States, its unincorporated agencies and instrumentalities, and any unincorporated [incorporated] agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States.
SECTION 2. Tax 11.05 (4) (a) is amended to read:
Tax 11.05 (4) (a) Section
77.54 (9a), Stats., exempts sales to and the storage, use or other consumption of tangible personal property and items and property under s.
77.52 (1) (b) and
(c), Stats., and services by Wisconsin or by any agency of Wisconsin, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation,
the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town or school district in this state; a county-city hospital established under s.
66.0927, Stats.; a sewerage commission organized under s.
281.43 (4), Stats., or a metropolitan sewerage district organized under ss.
200.01 to
200.15 or
200.21 to
200.65, Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s.
66.0823, Stats.; any corporation, community chest fund, foundation or association organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s.
613.80 (2), Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member or corporation; a local exposition district under subch.
II of ch. 229, Stats.; a local cultural arts district under subch.
V of ch. 229, Stats.; and a cemetery company or corporation described under section
501 (c) (13) of the Internal Revenue Code, if the tangible personal property or taxable services are used exclusively by the cemetery company or corporation for the purposes of the company or corporation.
SECTION 3. Tax 11.08 (4) (a) and (6) (Note 2) are amended to read:
Tax 11.08 (4) (a) “Prosthetic device" is defined in s.
77.51 (11m), Stats., to mean a
replacement, corrective, or supportive device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.
(6) (Note 2) The interpretations in s.
Tax 11.08 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Charges for oxygen equipment became exempt September 1, 1983, pursuant to
1983 Wis. Act 27; (b) Charges for motorized wheelchairs and scooters became exempt September 1, 1985, pursuant to
1985 Wis. Act 29; (c) Charges for apparatus or equipment for the injection of insulin or the treatment of diabetes and supplies used to determine blood sugar levels became exempt March 1, 1989, pursuant to
1987 Wis. Act 399; (d) Charges for antiembolism elastic hose and stockings prescribed by a physician became exempt October 1, 1989, pursuant to
1989 Wis. Act 31; (e) The exemption for adaptive equipment for a handicapped person's vehicle became exempt effective June 1, 1990, pursuant to
1989 Wis. Act 238, renumbered by
1989 Wis. Act 359; (f) The exemption for parts and accessories became effective August 15, 1991, pursuant to
1991 Wis. Act 39; (g) The exemptions provided in s. 77.54 (14s) and (22), Stats., were repealed effective October 1, 2009, and replaced with the exemptions provided under s. 77.54 (22b), Stats., pursuant to
2009 Wis. Act 2;
and (h) The exemption in s.
77.54 (28), Stats., was amended to remove the exemption for apparatus and equipment for the injection of insulin or the treatment of diabetes. These items will still qualify for exemption under s.
77.54 (22b), Stats., if they are for home use, pursuant to
2009 Wis. Act 2; and (i) The clarification that a "prosthetic device" must be a replacement, corrective, or supportive device became effective July 2, 2013, pursuant to 2013 Wis. Act 20.
SECTION 4. Tax 11.11 (2m) (b) (Note) is amended to read:
Tax 11.11 (2m) (b) (Note)
Refer to s. Tax 12.40 for information related to the property tax exemption for industrial waste treatment facilities. For
more information regarding the property tax exemption for industrial waste treatment facilities of manufacturers write or call the district office of the Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessments. To locate the district office, write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, PO Box 8971, Madison WI 53708-8971; telephone (608) 266-1147. The web site is
www.revenue.wi.gov/contact/slfbmta.html. To ascertain whether a non-manufacturing property would be exempt under s.
70.11(21), Stats., owners may refer to the Wisconsin Property Assessment Manual or contact the local property tax assessor.
SECTION 5. Tax 11.12 (2) (b) and (7) (d) (Note 1) and (Note 2) are amended to read:
Tax 11.12 (2) (b) “Custom farming services" means the performance of an activity, defined as farming in this section, for a farmer for a fee. The fee may include a cash payment, a share of the harvest or other valuable consideration. “Custom farming services" also includes services performed by a veterinarian to animals that are farm livestock or farm work stock used exclusively in the business of farming.
(Note 2) The interpretations in s.
Tax 11.12 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Semen became exempt effective July 22, 1971, pursuant to
Chapter 64, Laws of 1971; (b) Baling wire and twine became exempt effective December 24, 1975, pursuant to
Chapter 146, Laws of 1975; (c) The exemption for electricity for residential use and use in farming and for fuel oil, propane, coal, steam or wood for residential use became effective July 1, 1979, pursuant to
Chapter 1, Laws of 1979; (d) The definition of “feed lot" became effective December 1, 1981; (e) Farm livestock medicine, milk house supplies and animal bedding became exempt effective July 1, 1986, pursuant to
1985 Wis. Act 29; (f) The definition of “exclusively used" became effective October 1, 1989, pursuant to
1989 Wis. Act 31; (g) The farm machinery exemption was revised effective October 1, 1989, pursuant to
1989 Wis. Act 31; (h) The exemption for farm fuel for items other than machines became effective October 1, 1991, pursuant to
1991 Wis. Act 39; (i) The exemption for electricity sold for use in farming was expanded to include sales of electricity during the entire year, effective for sales on or after May 1, 2000, pursuant to
1999 Wis. Act 9; (j) The expansion of the exemption for tangible personal property consumed in farming and the addition of “silviculture" to the definition of farming became effective July 1, 2007, pursuant to
2005 Wis. Act 366;
and (k) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (L) The clarification that “custom farming services" includes services performed by veterinarians to farm livestock or work stock used exclusively in the business of farming became effective July 2, 2013, pursuant to 2013 Wis. Act 20.
SECTION 6. Tax 11.19 (2) (a) is renumbered Tax 11.19 (2) (a) (intro.) and amended to read:
Tax 11.19 (2) (a) (intro.) Section
77.52 (2) (a) 11., Stats., imposes the sales and use tax on certain services. However, an exemption is provided for the printing or imprinting of tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., furnished by customers, that results in
printed materials, catalogs, or envelopes that are exempt under s. 77.54 (25) or (25m), Stats. any of the following:
SECTION 7. Tax 11.19 (2) (a) 1. to 3. are created to read:
Tax 11.19 (2) (a) 1. Printed materials that are exempt under s.
77.54 (25), Stats.
2. Catalogs or their mailing envelopes that are exempt under s.
77.54 (25m), Stats.
3. Advertising and promotional direct mailing that is exempt under s.
77.54 (59), Stats.
SECTION 8. Tax 11.19 (6) (Note 1) and (Note 2) are amended to read:
Tax 11.19 (6) (Note 1) Section
Tax 11.19 interprets ss.
77.51 (1fr),
(8), and
(13h),
77.52 (1), and (2) (a) 11., 77.54 (2m), (9a), (15), (25), (25m),
and (43),
and (59), and 77.55 (1), Stats.
(Note 2) The interpretations in s.
Tax 11.19 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for printing or imprinting of tangible personal property furnished by customers and used out-of-state in sub. (2) (a) became effective March 1, 1970; (b) The exemption for advertising materials used out-of-state in sub. (4) (a) became effective May 21, 1972; (c) The second class mail standard described in sub. (3) became effective August 1, 1974; (d) The exemption for sales of shoppers guides became effective July 1, 1978; (e) The exemption for ingredients and components of shoppers guides, newspapers and periodicals described in sub. (2) (d) became effective July 2, 1983; (f) The definition of newspaper in sub. (3) (a) and the limitation of the periodical exemption to “periodicals sold by subscription" became effective July 2, 1983; (g) The exemption for controlled circulation publication reflected in subs. (2) (b) and (3) (b) became effective September 1, 1983, pursuant to
1985 Wis. Act 149; (h) The provision for foreign publishers described in sub. (2) (e) became effective January 1, 1980 for publishers of books or periodicals or both other than catalogs and January 1, 1990, for all other foreign publishers pursuant to
1989 Wis. Act 336; (i) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to
1993 Wis. Act 16; (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; (k) The exemption for periodicals sold by subscription by educational associations and corporations which are exempt under s.
77.54 (9a) (f), Stats., became effective December 1, 1997 pursuant to
1997 Wis. Act 27; (L) The exemption for catalogs became effective April 1, 2009 pursuant to
2007 Wis. Act 20; (m) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (n) The definition of “direct mail" became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (o) The definition of “advertising and promotional direct mail" became effective May 27, 2010, pursuant to
2009 Wis. Act 330;
and (p) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to
2011 Wis. Act 32; and (q) Services resulting in advertising and promotional direct mail were excluded from taxable services effective July 1, 2013, pursuant to 2013 Wis. Act 20.
SECTION 9. Tax 11.20 (1) (cg) and (cr) are created to read:
(cr) “Combined group" has the meaning given in s.
71.255 (1) (a), Stats.
SECTION 10. Tax 11.20 (1) (h) is amended to read:
Tax 11.20 (1) (h) “Qualified research" means qualified research as defined under section
41 (d) (1) of the Internal Revenue Code
, except that it includes qualified research that is funded by a member of a combined group for another member of a combined group.
SECTION 11. Tax 11.20 (2) (a) is repealed and recreated to read:
Tax 11.20 (2) (a) The sales price from the sale of and the storage, use, or other consumption of machinery and equipment, including attachments, parts, and accessories, and other tangible personal property or items or property under s.
77.52 (1) (b) or
(c), Stats., that are sold to any of the following and that are consumed or destroyed or lose their identities while being used exclusively and directly in qualified research is exempt:
1. A person engaged in manufacturing in this state at a building assessed under s.
70.995, Stats.
2. A person engaged primarily in biotechnology in this state.
3. A combined group member who is conducting qualified research for another combined group member and that other combined group member is a person described under subd. 1. or 2.
SECTION 12. Tax 11.20 (2) (b), (Example 2), (Example 3), (c), (d) (Example 1) to (Example 5), and (e) (L) (Example) and (3) (a) 2. and (b) are amended to read:
Tax 11.20 (2) (b) For purposes of determining whether a person is engaged primarily in manufacturing or biotechnology in this state under par. (a), only activities in Wisconsin are considered. When a person conducts activities in Wisconsin in addition to manufacturing or biotechnology, the person must allocate its activities between its manufacturing and biotechnology activities and its other activities using a reasonable and consistent method. If a person's manufacturing and biotechnology activities in Wisconsin are more than 50% of its total activities in Wisconsin, the person is engaged primarily in manufacturing or biotechnology in this state.
(Example 2) Company B performs research and development services at locations outside of Wisconsin
that constitute biotechnology. Company B
also manufactures tangible personal property at a
location building in Wisconsin
, assessed under s. 70.995, Stats.
The manufacturing activity does not constitute biotechnology. This is Company B's only activity in Wisconsin. The products manufactured in Wisconsin are used by Company B in performing its research and development services at locations outside of Wisconsin. Company B is
not engaged primarily in
manufacturing biotechnology in Wisconsin
since
but is engaged in manufacturing
is its only activity in Wisconsin
at a building assessed under s. 70.955, Stats.
(Example 3) Company X manufactures machinery at a plant outside of Wisconsin. Company X operates a facility in Wisconsin that is devoted solely to research and development relating to the products Company X manufactures. Although Company X's activities in Wisconsin are research and development activities that constitute qualified research, its activities in Wisconsin are not biotechnology. The research and development activities are Company X's only activities in Wisconsin. Therefore, Company X is
not neither engaged
primarily in manufacturing
in Wisconsin at a building assessed under s. 70.995, Stats., or nor engaged primarily in biotechnology in Wisconsin.
(c) For purposes of determining whether an activity is qualified research under par. (a) 1. or 2., the regulations under Treas. Reg. section 1.41-4 apply, except that qualified research that is funded by a member of a combined group for another member of a combined group shall remain qualified research for purposes of this subsection.
(d) (Example 1) Company A is engaged
primarily in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Company A purchases a machine that it will use directly in conducting qualified research at its manufacturing plant in Wisconsin and purchases it exempt from Wisconsin sales tax claiming the exemption in par. (a). After completing the qualified research and having made no use of the machine other than direct use in qualified research, Company A begins using the machine exclusively and directly in its manufacturing operation, which is another exempt use
under s. 77.54 (6) (a), Stats. Company A does not owe Wisconsin sales or use tax on its purchase of the machine since it
only used uses the machine
only in an exempt manner.
(Example 2) Company B is engaged
primarily in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Company B purchases a machine that it will use directly in conducting qualified research at its manufacturing plant in Wisconsin. More than 5% of Company B's total use of this machine will be for conducting research and development projects that do not meet the definition of qualified research. Company B's purchase of the machine is taxable because it is not used exclusively in qualified research.
(Example 3) Company C is engaged
primarily in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Company C develops a new product in an activity that is qualified research. Company C purchases a variety of raw materials. Some of these materials are used exclusively and directly and destroyed in qualified research. Once the qualified research is completed, Company C consumes the remaining raw materials in activities that are not qualified research. Company C's purchases of the raw materials that it uses exclusively and directly and destroys in qualified research are exempt under par. (a) 2. Company C's purchases of the raw materials that it uses in activities that are not qualified research do not qualify for
this exemption
under par. (a).
(Example 4) Manufacturer P is engaged
primarily in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Manufacturer P contracts with Company D to produce a prototype that is tangible personal property. Manufacturer P's primary objective in this transaction is to obtain the prototype, rather than a research and development service. Company D may purchase the materials used to construct the prototype without tax for resale. Manufacturer P will use the prototype exclusively and directly in one of its research and development activities that constitutes qualified research and may claim the exemption under par. (a) on its purchase of the prototype.
(Example 5) Manufacturer F is engaged
primarily in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Manufacturer F contracts with Company E to perform research services.
Manufacturer F and Company E are not members of the same combined group. Company E will provide a prototype that is tangible personal property to Manufacturer F along with these services. Manufacturer F's primary objective in this transaction is to obtain the research and development services. Company E's primary activity in Wisconsin is the provision of professional engineering services that do not involve biotechnology
, and Company E is not a manufacturer. Company E may not claim the exemptions under par. (a), since Company E is
not
neither engaged
primarily in manufacturing
in Wisconsin at a building assessed under s. 70.995, Stats., or
nor engaged primarily in biotechnology in Wisconsin. In addition, Company E cannot purchase the materials without tax for resale that it uses to construct the prototype, because Company E uses the prototype in performing its research services. The prototype is transferred to Manufacturer F incidental to the research services.
(e) (L) (Example) This example illustrates records that are generally acceptable as adequate to document the exemptions under par. (a).
Company A is
primarily engaged in manufacturing in Wisconsin
at a building assessed under s. 70.995, Stats. Company A attempts to make a new and improved widget. Upon approval of a project, Company A documents the scope and goals of the project, the uncertainties that exist in accomplishing these goals, and the processes by which Company A hopes to eliminate the uncertainties. In addition, contemporaneously with conducting the research project, Company A documents: (1) the location or locations at which the research is conducted, (2) the machinery and equipment used in the project and the manner used, (3) the various materials and supplies used in attempting to produce the improved widget, the purpose and manner in which such items were used, (4) the processes applied, (5) the results achieved throughout the research process, and (6) the point at which Company A either abandons the research project or achieves the goal of eliminating the uncertainties involved with the development of the new widget. Company A purchased various machinery and equipment, and supplies and materials used in conjunction with development of the new widget without tax claiming the purchases are exempt under par. (a). In general, contemporaneous records kept in the manner and detail described will be accepted and used by the department in making its determinations regarding whether the taxpayer is entitled to claim the exemptions under par. (a).
(3) (a) 2. Seeds for planting, plants, feed, fertilizer, soil conditioners, animal bedding, sprays, pesticides and fungicides, breeding and other livestock, poultry, farm work stock, baling twine and baling wire, containers for fruits, vegetables, grain, hay, silage and animal wastes, plastic bags, plastic sleeves and plastic sheeting used to store or cover hay or silage, medicines drugs, semen for artificial insemination, fuel, and electricity, that are used exclusively and directly in raising such animals.
(b) For purposes of determining whether an activity is qualified research under par. (a), the regulations under Treas. Reg. section 1.41-4 apply, except that qualified research that is funded by a member of a combined group for another member of a combined group shall remain qualified research for purposes of this subsection.
SECTION 13. Tax 11.20 (4) (e) 2. (Note 1) and (Note 2) are created to read:
(Note 2)
Note: The interpretations in s.
Tax 11.20 are effective beginning January 1, 2012, pursuant to
2009 Wis. Act 28, except for the following amendments effective July 2, 2013, pursuant to
2013 Wis. Act 20: (a) “Qualified research" was amended to include research funded by one member of a combined group for another member of a combined group; (b) The exemption for property used in qualified research by persons engaged primarily in manufacturing in Wisconsin was amended to apply to property used in qualified research by a person engaged in manufacturing in Wisconsin at a building assessed under s.
70.995, Stats.; (c) The exemption for property used in qualified research was amended to include use by one member of a combined group who is conducting qualified research for another combined group member who is either engaged in manufacturing in Wisconsin at a building assessed under s.
70.995, Stats., or is primarily engaged in biotechnology; and (d) The change of the term “medicines" to “drugs."
SECTION 14. Tax 11.26 (title), (1) (a) and (b), and (2) (title), (intro.), (c), and (h) are amended to read:
Tax 11.26 (title) Other taxes, fees, and charges in taxable sales price and purchase price.
(1) (a) Tangible personal property and items, property, and goods under s.
77.52 (1) (b),
(c), and
(d), Stats., sold at retail are subjected to many direct and indirect taxes
, fees, and charges prior to reaching a retailer. The taxes
, fees, and charges are commonly included in the price the retailer pays for the property and are not separately identifiable as taxes
, fees, and charges. Occasionally, however, a tax
, fee, or charge is either separately passed on to a retailer or is imposed at the retail level of activity, but is different from and in addition to the sales tax. The tax
, fee, or charge may be imposed by Wisconsin, the federal government, or a municipality.
(b) In determining the sales price or purchase price used to compute Wisconsin sales or use taxes, the treatment of a tax, fee, or charge for sales tax purposes is identical to the treatment that applies for use tax purposes. The same taxes, fees, and charges that are included or excluded from the sales price are also included or excluded from the purchase price.
(2) (title) Taxes, fees, and charges included as part of sales price and purchase price.
(intro.) The following taxes, fees, and charges are included in the sales price and the purchase price, regardless of whether they are separately stated on the invoice, bill of sale, or other similar document given by the seller to the purchaser, except as provided in sub. (3):
(c) Any federal stamp tax and manufacturer's or importer's excise tax not imposed directly on the purchaser. Federal excise taxes include excise taxes on alcohol, tobacco, motor and aviation fuel except motor fuel taxes refunded, tires, firearms and ammunition, sporting goods, and air or ship transportation.
(h) The federal gas guzzler tax imposed under s. 4064 of the internal revenue code Internal Revenue Code.
SECTION 15. Tax 11.26 (2) (i) to (s) are created to read:
Tax 11.26 (i) The federal excise tax imposed on the first retail sale of heavy trucks and trailers under s. 4051 of the Internal Revenue Code.
(j) The federal medical device excise tax imposed under s. 4191 of the Internal Revenue Code.
(k) The federal universal service fund fee.
(L) The dry cleaning fee imposed under s.
77.9961, Stats.
(m) The dry cleaning products fee imposed under s.
77.9962, Stats.
(n) The PUC fee imposed under s.
196.85, Stats.
(o) The telephone relay service surcharge imposed under s.
196.858, Stats.
(p) The telecommunications utility trade practices surcharge imposed under s.
196.859, Stats.
(q) The state-issued video service franchise fee imposed under s.
66.0420 (7), Stats.
(r) The petroleum inspection fee imposed under s.
168.12, Stats.
(s) The motor fuel taxes imposed under s.
78.01, Stats.
SECTION 16. Tax 11.26 (3) (title) and (intro.) are amended to read:
Tax 11.26 (3) (title) Taxes, fees, and charges excluded from sales price or purchase price.
(intro.) Section
77.51 (12m) (b) 3. and
(15b) (b) 3., Stats., exclude from the sales price and purchase price any taxes legally imposed directly on the purchaser that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser.
Section 77.51 (12m) (b) 3m. and (15b) (b) 3m., Stats., exclude from the sales price and purchase price taxes imposed on the seller that are separately stated on the invoice, bill of sale, or similar document that the seller gives to the purchaser if the law imposing or authorizing the tax provides that the seller may, but is not required to, pass on to and collect the tax from the user or consumer. Therefore, the following taxes
, fees, and charges are excluded from the sales price or the purchase price if they are separately stated on the invoice, bill of sale, or similar document given to the purchaser:
SECTION 17. Tax 11.26 (3) (ac) to (ax) are created to read:
Tax 11.26 (3) (ac) The room taxes imposed under s.
66.0615, Stats., which municipalities or local exposition districts impose on persons furnishing lodging to transients.
(ag) The county and stadium sales and use taxes imposed under s.
77.71, Stats.
(aL) The local exposition district food and beverage and rental car taxes imposed under ss.
77.98 and
77.99, Stats.
(ap) The premier resort area taxes imposed under s.
77.994, Stats.
(at) The state rental vehicle fee imposed under s.
77.995, Stats.
(ax) The federal luxury tax imposed under ss. 4001 to 4007 of the Internal Revenue Code.
SECTION 18. Tax 11.26 (3) (b) and (Example 1) to (Example 7) are repealed.
SECTION 19. Tax 11.26 (3) (c) (Note 2) is amended to read:
The interpretations in s.
Tax 11.26 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exclusion for federal and Wisconsin motor vehicle excise taxes refunded became effective December 1, 1997, pursuant to
1997 Wis. Act 27; (b) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (c) the regional transit authority taxes were authorized by
2009 Wis. Act 28 and repealed by
2011 Wis. Act 32; and (d) The definitions of “purchase price" and “sales price" were amended to provide when taxes are not included in the “purchase price" or “sales price," pursuant to 2013 Wis. Act 20.
SECTION 20. Tax 11.26 (3) (d) to (h) are created to read:
Tax 11.26 (3) (d) The police and fire protection fee imposed under s.
196.025 (6), Stats.
(e) The low-income assistance fees imposed under s.
16.957 (4) and
(5), Stats.
(f) The landline 911 charge imposed under s.
256.35 (3), Stats.
(g) The wireless 911 charge imposed under s.
256.35 (3m), Stats.
(h) The state USF fee imposed under s.
196.218, Stats.
SECTION 21. Tax 11.33 (4) (f) (Example 1) is amended to read:
Tax 11.33 (4) (f) (Example 1) If the sales price from a person's garage and rummage sales, lawn maintenance services, bait sales to fishermen, sales of books, charges for parking and other normally taxable receipts are less than $1,000 during the calendar year, that person's receipts are deemed exempt occasional sales under par.
(g)
(f). However, purchases by the seller of the tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., which are sold are taxable.
SECTION 22. Tax 11.39 (1) (b) is amended to read:
Tax 11.39 (1) (b) “Plant" as defined in s.
77.51 (10b), Stats., means a parcel of property or adjoining parcels of property, including parcels that are
separate separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer. Plant inventory does not include unsevered mineral deposits as provided in s.
77.51 (10c), Stats.
SECTION 23. Tax 11.45 (3) (a) and (6) (Note 2) are amended to read:
Tax 11.45 (3) (a) “Prosthetic device" is defined in s.
77.51 (11m), Stats., to mean a
replacement, corrective, or supportive device, including
the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.
(6) (Note 2) The interpretations in s.
Tax 11.45 are effective under the general sales and use tax law, on and after September 1, 1969, except: (a) Charges for oxygen equipment became exempt September 1, 1983, pursuant to
1983 Wis. Act 27; (b) Charges for motorized wheelchairs and scooters became exempt September 1, 1985, pursuant to
1985 Wis. Act 29; (c) Charges for apparatus or equipment for the injection of insulin or the treatment of diabetes and supplies used to determine blood sugar level became exempt March 1, 1989, pursuant to
1987 Wis. Act 399; (d) Charges for antiembolism elastic hose and stockings prescribed by a physician became exempt October 1, 1989, pursuant to
1989 Wis. Act 31; (e) Sales of parts and accessories for certain medical items became exempt effective August 15, 1991, pursuant to
1991 Wis. Act 39; (f) The definitions of “drug," “durable medical equipment," “mobility-enhancing equipment," and “prosthetic devices" and the exemptions for these items became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (g) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (h) The clarification that a "prosthetic device" must be a replacement, corrective, or supportive device became effective July 2, 2013, pursuant to 2013 Wis. Act 20.
SECTION 24. Tax 11.48 (3) (c) (Note 1) and (Note 2) are amended to read:
(Note 2) The interpretations in s.
Tax 11.48 are effective under the general sales and use tax law on and after September 1, 1969, except
: (a) The provisions of sub. (1) (c) 1. are effective on or after August 9, 1989, pursuant to
1989 Wis. Act 31; and (b) The change of the term "gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (c) The clarification that a service provider who transfers tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., incidentally with a taxable service is the consumer of such property, items, or goods became effective July 2, 2013, pursuant to 2013 Wis. Act 20.
SECTION 25. Tax 11.49 (2) (b) is amended to read:
Tax 11.49 (2) (b) Sales made directly to this state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin Economic Development Corporation,
the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority; any county, city, village, town, or school district in this state; a county-city hospital established under s.
66.0927, Stats.; a sewerage commission organized under s.
281.43 (4), Stats., or a metropolitan sewerage district organized under ss.
200.01 to
200.15 or
200.21 to
200.65, Stats.; any other unit of government in this state or any agency or instrumentality of one or more units of government in this state; any federally recognized American Indian tribe or band in this state; any joint local water authority created under s.
66.0823, Stats.; any corporation, community chest fund, foundation, or association organized and operated exclusively for religious, charitable, scientific, or educational purposes, or for the prevention of cruelty to children or animals, except hospital service insurance corporations under s.
613.80 (2), Stats., no part of the net income of which inures to the benefit of any private stockholder, shareholder, member, or corporation; a local exposition district under subch.
II of ch. 229, Stats.; a local cultural arts district under subch.
V of ch. 229, Stats. Sales to a cemetery company or corporation described under section
501 (c) (13) of the Internal Revenue Code, are exempt from sales and use tax if the cemetery company or corporation uses the items exclusively for the purposes of the company or corporation. Section
77.55 (1), Stats., provides an exemption for sales to the United States, its unincorporated agencies and instrumentalities, and any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States. Sales to employees of these entities are not exempt, even though the entity may reimburse the employee for the expenditure.
SECTION 26. Tax 11.52 (5) (a) and (7) (c) (Note 2) are amended to read:
Tax 11.52 (5) (a) Laundry, dry cleaning and pressing machines when the service is performed by the customer through the use of coin-operated, self-service machines.
(7) (c) (Note 2) The interpretations in s.
Tax 11.52 are effective under the general sales and use tax law on and after September 1, 1969, except
: (a) the The definitions of “candy," “dietary supplement," “food and food ingredient," and “soft drink," the exemption for food and food ingredients, the change of the term “gross receipts" to “sales price," and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2 and (b) Receipts from all self-service laundry, dry cleaning, pressing, and dyeing machines, including those that are not coin-operated, are not taxable effective October 1, 2013, pursuant to 2013 Wis. Act 20.
SECTION 27. Tax 11.56 (7) (bm) and (8) (Note 1) and (Note 2) are amended to read:
Tax 11.56 (7) (bm) Section
77.52 (2) (a) 11., Stats., provides that the tax does not apply to the service of printing or imprinting tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., that results in printed material, catalogs, or envelopes that are exempt under s.
77.54 (25), or (25m),
or (59), Stats.
(8) (Note 1) Section
Tax 11.56 interprets ss.
77.51 (7h),
(8),
(11), and
(14) (h),
77.52 (1) and
(2) (a) 11., and
77.54 (2),
(2m),
(6) (a) and
(b),
(25),
(25m),
(30) (a) 6.,
and (43),
(59), and (61), Stats.
(Note 2) The interpretations in s.
Tax 11.56 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Sales of typeset material shall first be considered sales of tangible personal property on April 1, 1983; (b) The exemption in sub. (3) (b) 2. for ingredients of publications became effective July 2, 1983, pursuant to
1983 Wis. Act 27; (c) The definition of storage and use for purposes of imposing use tax does not include storing or using raw materials becoming printed materials to be shipped outside Wisconsin effective October 1, 1993, pursuant to
1993 Wis. Act 16; (d) The sales and use tax exemption for raw materials transported and used solely outside Wisconsin became effective December 1, 1997, pursuant to
1997 Wis. Act 27; (e) The exemption for fuel and electricity consumed in manufacturing became effective January 1, 2006, pursuant to
2003 Wis. Act 99; (f) The exemption for catalogs and the envelopes in which they are mailed became effective April 1, 2009 pursuant to
2007 Wis. Act 20; (g) The requirement that property and items which qualify for exemption under s.
77.54 (2) and
(2m), Stats., be consumed exclusively and directly by a manufacturer in manufacturing property and items destined for sale became effective August 1, 2009 pursuant to
2009 Wis. Act 28; (h) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (i) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to
2011 Wis. Act 32; (j) Services resulting in advertising and promotional direct mail were excluded from taxable services effective July 1, 2013, pursuant to 2013 Wis. Act 20; and (k) The additional printing exemptions under s. 77.54 (61), Stats., became effective October 1, 2013, pursuant to 2013 Wis. Act 20.
SECTION 28. Tax 11.56 (9) is created to read:
Tax 11.56 (9)
Additional exemptions for printing industry. (a)
Definitions. In s.
77.54 (61), Stats., and this subsection:
1. “Commercial printing, except screen printing and book printing, without publishing, except grey goods printing" means activities described in 2012 North American Industry Classification 323111.
2. “Copies of the product" means finished artwork in a digital form that is generated, furnished, and used for the purpose of printing; represents the object, such as a book, catalog, pamphlet, or magazine, as it is to appear in a printed form; and includes files containing instructions or other information required by the printer for printing the product, such as instructions for plate-making or setting ink-levels at the printing press, whether these instructions or other information are furnished to the printer or derived by the printer from the finished art files.
3. “Finished artwork" has the meaning given in s.
77.51 (3rm), Stats.
4. “Prepress and postpress services in support of printing activities" means activities described in 2012 North American Industry Classification 323120.
5. “Primarily" means more than 50 percent.
6. “Printing or printing and binding of books and pamphlets without publishing" means activities described in 2012 North American Industry Classification 323117.
7. “Sent to a printing press" includes transferring a copy of the product, either electronically or through the use of a tangible storage media, to printing presses, ink-jet printers, plate-making machines, and similar machines or to storage devices devoting to serving such machines.
8. “Stored" has the meaning of the term “storage" as defined in s.
77.51 (18), Stats.
9. “Used" has the meaning of the term “use" as defined in s.
77.51 (22), Stats.
(b)
Exemptions. Section
77.54 (61), Stats., provides exemptions for purchases of computers and servers that are used to store copies of the product that is sent to a printing press and for purchases from out-of-state sellers of items that are temporarily stored, remain idle, and are not used in this state for not more than 180 days and that are then delivered and used outside this state, provided the purchaser is primarily engaged in any of the following:
1. Commercial printing, except screen printing and book printing, without publishing, except gray goods printing.
2. Printing or printing and binding books and pamphlets without publishing.
3. Performing prepress and postpress services in support of printing activities.
Examples: (1) Newspaper publishes a daily edition of a newspaper. Newspaper operates its own printing plant. The printing plant prints Newspaper's publications as well as printing under contract for third parties. More than 50 percent of Newspaper's sales are from sales of its newspaper and advertising revenues associated with sales of its newspaper. Newspaper's primary activity is described by NAICS code 511110:
Newspaper Publishers. Newspaper does not qualify for the exemption under s.
77.54 (61), Stats.
(2) Insurance Company operates its own printing plant. Insurance Company's primary source of revenues is insurance premiums. Insurance Company's primary NAICS code is described within NAICS subsector code 524: Insurance Carriers and Related Activities. Insurance Company does not qualify for the exemption under s.
77.54 (61), Stats.
(3) Business is engaged in screen printing of T-shirts, caps, and jackets. This is Business' only activity and source of revenue. Business' primary activity is described by NAICS code 323113: Commercial Screen Printing. Business does not qualify for the exemption under s.
77.54 (61), Stats.
(4) Company
is primarily engaged in the business of printing on fabric grey goods. Company's primary activity is described by NAICS code 313310: Textile and Finishing Mills. As such, Company does not qualify for the exemption under s.
77.54 (61), Stats.
SECTION 29. Tax 11.61 (2) (c) (Note 1) is amended to read:
SECTION 30. Tax 11.66 (1) (u) is repealed and recreated to read:
Tax 11.66 (1) (u) “Place of primary use" means the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, “place of primary use" means a street address within the licensed service area of the home service provider.
SECTION 31. Tax 11.66 (1) (x) and (6) (Note 3) are amended to read:
Tax 11.66 (1) (x) "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content, and ancillary services, and that is paid for prior to use and sold in predetermined dollar units whereby the number of units declines or dollars that decrease with use in a known amount.
(6) (Note 3) The interpretations in s.
Tax 11.66 are effective under the general sales and use tax law on or after September 1, 1969, except: (a)
Chapter 39, Laws of 1975, effective July 31, 1975, expanded the telephone services subject to the tax to include “telephone services of whatever nature"; (b)
Chapter 317, Laws of 1981, imposed the tax on interstate telegraph and telephone service, effective May 1, 1982; (c) "911" service became exempt on August 1, 1987, pursuant to
1987 Wis. Act 27; (d) Telecommunications services originating in Wisconsin and charged to a subscriber in Wisconsin became taxable October 1, 1989, pursuant to
1989 Wis. Act 31; (e) Telecommunications services originating in Wisconsin and charged to a service address in Wisconsin became taxable October 1, 1991, pursuant to
1991 Wis. Act 31; (f) The repeal of the exemption for equipment in central offices of telephone companies became effective September 1, 1995, pursuant to
1995 Wis. Act 27; (g) Telecommunications services paid for by the insertion of coins in a coin-operated telephone became taxable August, 1, 1996, pursuant to
1995 Wis. Act 351; (h) Certain telecommunications message services became taxable December 1, 1997, pursuant to
1997 Wis. Act 27; (i) Telecommunications services originating outside Wisconsin, terminating in Wisconsin and charged to a service address in Wisconsin, except certain services obtained by means of a toll-free number, became taxable December 1, 1997, pursuant to
1997 Wis. Act 27; (j) Credit for sales tax properly paid to another state on interstate telecommunications services became effective October 14, 1997, pursuant to
1997 Wis. Act 27; (k) Sales of rights to purchase telecommunications services became taxable August 1, 1998, pursuant to
1997 Wis. Act 237; (L) The exemption for interstate private line services no longer applies, effective December 1, 2002; (m) The definitions of air-to-ground radio telephone service, ancillary services, call-by-call basis, communications channel, conference bridging service, customer, customer channel termination point, detailed telecommunications billing services, directory assistance, eight hundred service, end user, fixed wireless service, home service provider, international telecommunications services, internet access services, interstate telecommunications services, intrastate telecommunications services, mobile telecommunications service, nine hundred service, paging service, place of primary use, postpaid calling service, prepaid calling service, prepaid wireless calling service, private communications service, radio service, radiotelegraph service, radiotelephone service, service address, telecommunications service, value-added nonvoice data service, vertical service, and voice mail service became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (n) The specific imposition of tax on ancillary services and interstate, intrastate, and international telecommunications services became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (o) The sourcing provisions related to telecommunications services became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (p) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (q) The definition of “primary place of use" was amended to replace the reference to federal law with specific language, and the definition of “prepaid wireless calling service" was amended, pursuant to 2013 Wis. Act 20.
SECTION 32. Tax 11.67 (3) (m) (Note 1) and (Note 2) are amended to read:
Tax 11.67 (3) (m) (Note 1) Section
Tax 11.67 interprets ss.
77.51 (1f),
(12),
(12m),
(13),
(14) (intro.) and
(h),
(15a),
(15b),
(20), and
(22) (a) and
(b) and
77.52 (1),
(2) (a),
(2m) (a) and
(b),
and (20),
and (21), Stats.
(Note 2) The interpretations in s.
Tax 11.67 are effective under the general sales and use tax law on and after September 1, 1969, except that (a) The fees paid to architects performing landscaping planning became taxable effective May 1, 1982, pursuant to
Chapter 317, Laws of 1981; (b) The definition of bundled transactions became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (c) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; and (d) The clarification that a service provider who transfers tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., incidentally with a taxable service is the consumer of such property, items, or goods became effective July 2, 2013, pursuant to 2013 Wis. Act 20.
SECTION 33. Tax 11.68 (7) (b) is repealed and recreated to read:
Tax 11.68 (7) (b) 1. In this paragraph, “lump sum contract" means a contract to perform real property construction activities and to provide tangible personal property, items or property under s.
77.52 (1) (b) or
(c), Stats., or taxable services and for which the contractor quotes the charge for labor, services of subcontractors, tangible personal property, items and property under s.
77.52 (1) (b) and
(c), Stats., and taxable services as one price, including a contract for which the contractor itemizes the charges for labor, services of subcontractors, tangible personal property, items and property under s.
77.52 (1) (b) and
(c), Stats., and taxable services as part of a schedule of values or similar document.
2. A contractor's sales price of a lump sum contract is exempt from tax if the total sales price of all taxable products and services sold by the contractor as a part of the lump sum contract is less than 10 percent of the total amount of the lump sum contract. Except as provided in subd. 3., the contractor is the consumer of such taxable products and must pay tax on its purchase of the taxable products.
3. If the lump sum contract is entered into with an entity that is exempt from taxation under s.
77.54 (9a), Stats., the contractor is the consumer of all taxable products used by the contractor in real property construction activities, but the contractor may purchase without tax, for resale, tangible personal property, items and property under s.
77.52 (1) (b) and
(c), Stats., and taxable services that are sold by the contractor as part of the lump sum contract with the entity and that are not consumed by the contractor in real property construction activities.
SECTION 34. Tax 11.68 (13) (e) (Note 1) and (Note 2) are amended to read:
Tax 11.68 (13) (e) (Note 1) Section
Tax 11.68 interprets ss.
77.51 (2),
(12m) (b) 7.,
(14) (intro.),
(15a) (b) 1. and
4.,
(15b) (b) 7.,
77.52 (2) (a) 10.,
11., and
20.,
77.53 (1),
77.54 (5) (d),
(6) (a),
(26),
(26m),
(31),
and (41),
and (60), 77.71 (3), and 77.77 (3), Stats.
(Note 2) The interpretations in s.
Tax 11.68 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) Vault doors were not considered personal property until August 1, 1975; (b) Service station equipment such as underground tanks, gasoline pumps and hoists installed in or securely attached to their owner's land was real property, but the property was personal property if the personal property and land were owned by different persons prior to August 1, 1975; (c) Advertising signs were real property if erected on and securely attached to the owner's land prior to August 1, 1975; (d) Landscaping services became taxable effective May 1, 1982, pursuant to
Chapter 317, Laws of 1981; (e) The exemption for waste reduction and recycling machinery and equipment became effective July 1, 1984, pursuant to
1983 Wis. Act 426; (f) The exemption for mobile units used for mixing and processing became effective July 20, 1985, pursuant to
1985 Wis. Act 29; (g) The credit for local sales taxes paid to other states became effective April 1, 1986, pursuant to
1987 Wis. Act 27; (h) The exemption for safety attachments for manufacturing machines became effective June 1, 1986, pursuant to
1985 Wis. Act 149; (i) The exemption of 35% of the selling price of new mobile homes and 100% of the selling price of used mobile homes became effective January 1, 1987, pursuant to
1985 Wis. Act 29; (j) The exemption for property used in constructing professional sports and home entertainment stadiums became effective October 1, 1991, pursuant to
1991 Wis. Act 37; (k) The 35% reduction in gross receipts for new mobile homes transported in 2 unattached sections became effective October 1, 1991, pursuant to
1991 Wis. Act 39; (L) Tangible personal property purchased outside Wisconsin, stored in Wisconsin and subsequently used outside Wisconsin became taxable October 1, 1991, pursuant to
1991 Wis. Act 39; (m) Raw materials purchased outside Wisconsin, manufactured, fabricated or otherwise altered by the contractor outside Wisconsin and used in real property construction by the contractor in Wisconsin became subject to use tax effective August 12, 1993, pursuant to
1993 Wis. Act 16; (n) In Tom Kuehne Landscape Contractor, Inc. vs. Wisconsin Department of Revenue, Wisconsin Court of Appeals, District IV, No. 86-1813, October 29, 1987 (CCH 202-919), highway signs, sign bridges, delineator posts and guardrails were found to remain tangible personal property after installation; (o) The stadium tax on building materials became effective January 1, 1996, pursuant to
1995 Wis. Act 56; (p) The change to the definition of “real property construction activities" to include only those activities that take place at a site where tangible personal property is affixed to real property became effective for sales of property pursuant to contracts entered into on or after December 1, 1997, pursuant to
1997 Wis. Act 27; (q) The clarification of the tax treatment of the original installation or complete replacement of certain deemed items became effective on October 1, 2001, pursuant to
2001 Wis. Act 16; (r) The changes in the use of the terms mobile homes and manufactured homes became effective January 1, 2008, pursuant to
2007 Wis. Act 11; (s) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2;
and (t) The exemption for modular homes and manufactured homes used in real property construction activities outside Wisconsin became effective September 1, 2011 pursuant to
2011 Wis. Act 32; and (u) The exemption for lump sum contracts first applied to contracts entered into on or after October 1, 2013, pursuant to 2013 Wis. Act 20.
SECTION 35. Tax 11.70 (2) (e) and (7) (b) (Note 2) and (Note 3) are amended to read:
Tax 11.70 (2) (e) Producing, fabricating, processing, printing, or imprinting tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., for clients for a consideration, even though the client may furnish the materials used in producing, fabricating, processing, printing, or imprinting the property, items, or goods. However, the tax does not apply to the printing or imprinting of tangible personal property or items, property, or goods under s.
77.52 (1) (b),
(c), or
(d), Stats., that results in printed material, catalogs, or envelopes that are exempt under s.
77.54 (25), or (25m),
or (59), Stats.
(7) (b) (Note 2) Section
Tax 11.70 interprets ss.
77.51 (1f),
(1fr),
(3rm),
(14) (intro.) and
(h),
77.52 (1) and
(2),
77.522,
77.54 (2),
(2m),
(6) (b),
(25),
(25m),
and (43),
and (59), and 77.585 (8), Stats.
(Note 3) The interpretations in s.
Tax 11.70 are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The exemption for printing or imprinting of tangible personal property furnished by customers and used out-of-state for advertising became effective March 1, 1970; (b) The exemption for printed advertising material used out-of-state became effective May 21, 1972; (c) The exemption for ingredients or components of shoppers guides, newspapers, and periodicals became effective July 7, 1983; (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; (e) The exemption for catalogs and their mailing envelopes became effective April 1, 2009, pursuant to
2007 Wis. Act 20; (f) The provision that items must be consumed exclusively and directly by a manufacturer in manufacturing property or items destined for sale became effective August 1, 2009, pursuant to
2009 Wis. Act 28; (g) The definitions of bundled transaction and finished artwork became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (h) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s.
77.52 (1) (b), Stats., certain leased property affixed to real property under s.
77.52 (1) (c), Stats., and digital goods under s.
77.52 (1) (d), Stats., became effective October 1, 2009, pursuant to
2009 Wis. Act 2; (i) The definition of “direct mail" became effective October 1, 2009 pursuant to
2009 Wis. Act 2; (j) The definition of “advertising and promotional direct mail" became effective May 27, 2010, pursuant to
2009 Wis. Act 330;
and (k) The sales and use tax exemption for advertising and promotional direct mail became effective July 1, 2013, pursuant to
2011 Wis. Act 32; and (L) Services resulting in advertising and promotional direct mail were excluded from taxable services effective July 1, 2013, pursuant to 2013 Wis. Act 20.
SECTION 36. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s.
227.22 (2) (intro.), Stats.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
|
Type of Estimate and Analysis
|
X Original ⍽ Updated ⍽ Corrected
|
Administrative Rule Chapter, Title and Number
|
Chapter Tax 11 — Sales and use tax
|
Subject
|
Sales and use tax provisions
|
Fund Sources Affected
|
Chapter 20 , Stats. Appropriations Affected
|
⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
|
|
Fiscal Effect of Implementing the Rule
|
X No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Costs
|
The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
|
Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
|
Policy Problem Addressed by the Rule
|
The rule does not create or revise policy, other than to reflect current law and department policy.
|
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
As indicated in the attached fiscal estimate, the proposed rule is intended to reflect law changes and clarify the tax treatment of certain items. Since the fiscal impact of the statutory changes has already been reflected, the proposed rule has no fiscal effect.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
|
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
Clarifications and guidance provided by administrative rules may lower the compliance costs for businesses, local governmental units, and individuals.
If the rule is not implemented, Chapter Tax 11 will be incomplete in that it will not reflect current law or department policy.
|
Long Range Implications of Implementing the Rule
|
No long-range implications are anticipated.
|
Compare With Approaches Being Used by Federal Government
|
N/A
|
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
N/A
|
FISCAL ESTIMATE FORM
|
|
2013 Session
|
X ORIGINAL ⍽ UPDATED
|
LRB #
|
|
|
INTRODUCTION #
|
|
⍽CORRECTED ⍽ SUPPLEMENTAL
|
Admin. Rule #
|
Tax 11: 2013-15 budget
|
Subject
|
Proposed order of the Department of Revenue related to sales tax
|
Fiscal Effect
|
State: X No State Fiscal Effect
Check columns below only if bill makes a direct appropriation or affects a sum sufficient appropriation
⍽ Increase Existing Appropriation
⍽ Increase Existing Revenues
⍽ Decrease Existing Appropriation
⍽ Decrease Existing Revenues
⍽ Create New Appropriation
|
⍽ Increase Costs — May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No
⍽Decrease Costs
|
Local: X No Local Government Costs
|
1. ⍽ Increase Costs
|
3. ⍽ Increase Revenues
|
5. Types of Local Governmental Units Affected:
|
⍽ Permissive ⍽ Mandatory
|
⍽ Permissive ⍽ Mandatory
|
⍽ Towns ⍽Villages
⍽ Cities
|
2. ⍽ Decrease Costs
|
4. ⍽ Decrease Revenues
|
⍽ Counties ⍽ Others
|
|
⍽ Permissive ⍽ Mandatory
|
⍽ Permissive ⍽ Mandatory
|
⍽ School Districts ⍽ WTCS Districts
|
Fund Sources Affected
⍽ GPR ⍽
FED ⍽ PRO ⍽
PRS ⍽ SEG ⍽ SEG-S
|
Affected Ch. 20 Appropriations
|
Assumptions Used in Arriving at Fiscal Estimate:
The proposed rule updates Chapter
TAX 11 of the Administrative Code, pertaining to the sales and use tax, to reflect certain sales tax changes contained in
2013 Wisconsin Act 20, the 2013-15 Budget Bill.
The proposed rule modifies the administrative code to reflect law changes and clarify the tax treatment of certain items.
The proposed rule includes:
•A sales and use tax exemption for certain property sold by a contractor as part of a lump sum contract.
• Repeal of the sales tax imposition on receipts from self-service laundry machines that are operated by tokens and magnetic cards.
• A sales and use tax exemption for services resulting in advertising and promotional direct mail.
• A sales and use tax exemption for certain products used by commercial printers.
• Updates and clarifications to reflect changes to sales and use tax statutes.
• Dissolution of the Health Insurance Risk-Sharing Plan and Authority.
The fiscal effect of the exemptions created under
2013 Wisconsin Act 20 has already been reflected under general fund condition statements subsequent to
2013 Wisconsin Act 20. Since the fiscal impact of the statutory changes has already been reflected, the proposed rule has no fiscal effect.
Notice of Hearing
Safety and Professional Services —
Board of Nursing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Board of Nursing in ss.
15.08 (5) (b) and
441.01 (3), Wis. Stats., and interpreting ss.
441.04,
441.05,
441.06, 441.0,8 and
441.10, Wis. Stats., the Board of Nursing will hold a public hearing at the time and place indicated below to consider an order to repeal and recreate Chapters
N 2 and
3, relating to nurse licensure and examining councils.
Hearing Information
Date: Thursday, February 13, 2014
Time: 8:05 a.m.
Location: 1400 East Washington Avenue
Room 121A
Madison, Wisconsin
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 Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.
Place where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8935, or by email to
Sharon.Henes@wisconsin.gov. Comments must be received at or before the public hearing to be held on
February 13, 2014, to be included in the record of rule-making proceedings.
Copies of Rule
Copies of this proposed rule are available upon request to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8366, Madison, Wisconsin 53708, or by email at
Sharon.Henes@wisconsin.gov.
Analysis Prepared by the Department of Safety and Professional Services
Statutes interpreted
Statutory authority
Explanation of agency authority
The board shall promulgate rules for its own guidance and for the guidance of the profession and define and enforce professional conduct and unethical practices not inconsistent with the law relating to the profession.
Specifically, the board may also establish rules to prevent unauthorized persons from practicing professional nursing. It shall approve all rules for the administration of ch.
441, Wis. Stats.
Related statute or rule
Plain language analysis
This proposed rule updates the licensure process.
Section 1 repeals and recreates ch.
N 2. The first subsection is licensure by examination. The qualifications for professional nurse licensure are graduating from a high school or equivalent, does not have an arrest or conviction record related to the practice of nursing, graduated from a school of nursing and passes the NCLEX exam. The qualifications for practical nurse licensure are 2 years of high school, does not have an arrest or conviction record related to the practice of nursing, graduated from a school of nursing and passes the NCLEX exam. The application procedure is submitting an application, paying the fee, submitting proof of graduation, passing the NCLEX, and submitting all relevant information relating to criminal charges, convictions of crimes or any acts which would constitute unprofessional conduct. If the nurse is a graduate from a U.S. territory or outside the United States, the education credentials need to be evaluated by the Commission on Graduates of Foreign Nursing Schools.
The second subsection is licensure by endorsement. An applicant holding a current license from a compact state shall submit a completed application, pay the fee, declare Wisconsin as the primary state, and submit all relevant information relating to criminal charges, convictions of crimes, any acts which would constitute unprofessional conduct or discipline taken by another state. An applicant holding a current license from another U.S. state, territory or Canada shall submit evidence of initial licensure including graduation from an approved nursing school and passage of the NCLEX or evidence of educational qualifications and licensure examination. In addition, a applicant shall submit a completed application, pay the fee, verification from the state of initial licensure and current licensure, documentation of employment history, and submitting all relevant information relating to criminal charges, convictions of crimes, any acts which would constitute unprofessional conduct or discipline taken by another state. An applicant who does not have current nursing education or been employed in a position that requires a nursing license may apply for a limited license to complete a nurse refresher course.
The third subsection is temporary permits. A nurse who has graduated from an approved or comparable school may apply for a temporary permit upon submission of a completed application, payment of fee and verification of graduation from a nursing school. A graduate nurse may use the title of G.N. for graduate nurse or G.P.N. for graduate practical nurse. The holder of a temporary permit may only work under direct supervision unless the person holds a nursing license in another state. The temporary permit is valid for a period of three months or the receipt of results indicating failing the NCLEX. A temporary permit may be renewed once and may be renewed subsequently on the basis of hardship. A temporary permit may be denied or revoked for providing false information on the application, misrepresentation of title without a valid permit or for unprofessional conduct.
Section 2 repeals and recreates chapter N 3. The examining councils serve the Board in an advisory capacity. The section states the appointment process and composition of the two nursing examining councils.
Summary of, and comparison with, existing or proposed federal regulation
None
Comparison with rules in adjacent states
Illinois: In Illinois an applicant is eligible for nurse licensure by examination if the applicant completes an application, pays the fee, submits to a criminal background check and graduates from an approved school. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools. A nurse is eligible for licensure if the applicant completes and application, pays the fee, submits to a criminal background check, graduates from an approved school, submits verification of licensure status from the jurisdiction of original licensure, the current state of licensure and all states the applicant has directly practiced in within the last 5 years. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools.
Iowa: In Iowa an applicant is eligible for nurse licensure by examination if the applicant graduated from high school or the equivalent, completes an application, pays the fee, graduated from an approved program and passes NCLEX. If the person has a criminal conviction history or prior disciplinary action, the applicant must receive Board approval. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools. A nurse from a compact state shall submit a completed application, pay the fee, declare Iowa as the primary state. A nurse is eligible for licensure by endorsement from a non-compact state if the applicant completes an application, pays a fee, has verification of original licensure and nursing program transcripts and submits a criminal background check. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools. If the person has a criminal conviction history or prior disciplinary action, the applicant must receive Board approval.
Michigan: In Michigan an applicant is eligible for nurse licensure by examination if the applicant completed an application, pays the fees, completed approved nursing education program and passes NCLEX. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools. A nurse is eligible for licensure by endorsement if the applicant completes an application, pays the fee, graduated from an approved school of nursing and was first licensed in another state pursuant to passage of NCLEX.
Minnesota: In Minnesota a nurse is eligible for licensure by examination if the applicant completes an application, pays the fee, graduated from an approved school and passes NCLEX. If educated outside of the United States, the education is to be evaluated by the Commission on Graduates of Foreign Nursing Schools. A nurse is eligible for licensure by endorsement if the applicant completes an application, pays the fee, shows verification of licensure in another jurisdiction, has passed an examination acceptable to the board and answers questions related to any prior disciplinary actions. If the applicant has not engaged in acceptable nursing practice within the 2 years of application, the applicant must complete one contact hour of continuing education for each month that the applicant was not engaged in acceptable practice for a maximum of 60 hours and if the person has not practiced for more than 5 years, the applicant must compete a nurse refresher course. Minnesota does issue privilege to practice nursing in Minnesota licenses to border state applicants upon meeting certain requirements.
Summary of factual data and analytical methodologies
The Board reviewed the National Council of State Board of Nursing's model rules and the licensing requirements in our neighboring states.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
The rule was posted for economic comments for a period of 14 days and none were received. This rule is related to an individual's eligibility for licensure and does not effect small business.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
These proposed rules do not have an economic impact on small businesses, as defined in s.
227.114 (1), Stats.
Agency Contact Person
Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-261-2377; email at
Sharon.Henes@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original
⍽ Updated
⍽ Corrected
|
2. Administrative Rule Chapter, Title and Number
|
N 2, 3
|
3. Subject
|
Nurse Licensure
|
4. Fund Sources Affected
|
5. Chapter 20, Stats. Appropriations Affected
|
⍽ GPR
⍽ FED
X PRO
⍽ PRS ⍽ SEG ⍽ SEG-S
|
20.165(1)(g)
|
6. Fiscal Effect of Implementing the Rule
|
⍽ No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
X Increase Costs
X Could Absorb Within Agency's Budget
⍽ Decrease Cost
|
7. The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
|
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
|
9. Policy Problem Addressed by the Rule
|
This rule updates and creates clarity regarding the process of obtaining a nurse license. There has not been a review of these chapters since 1984.
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
|
This rule was posted for economic comments for a period of 14 days and no comments were received.
|
11. Identify the local governmental units that participated in the development of this EIA.
|
None.
|
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
None.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
The benefit is to create clarity and bring the process in line with current technologies.
|
14. Long Range Implications of Implementing the Rule
|
The long range implication is an updated licensure procedure.
|
15. Compare With Approaches Being Used by Federal Government
|
None
|
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Our neighboring states require graduation from an approved school and passage of the NCLEX. Both Illinois and Iowa require fingerprint criminal background checks. All of the neighboring states require a person educated outside of the U.S. to have their education evaluated by the Commission on Graduates of Foreign Nursing Schools. The endorsement requirements of our neighboring states include verification of licensure in the other jurisdiction(s) and consideration of past disciplinary actions. Illinois and Iowa require fingerprint criminal background checks. Minnesota requires nursing practice within 2 years of the application.
|
17. Contact Name
|
18. Contact Phone Number
|
Sharon Henes
|
(608) 261-2377
|
This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Safety and Professional Services —
Board of Nursing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Board of Nursing in ss.15.08 (5) (b) and 441.01 (3), Wis. Stats., and interpreting ss.
441.01 (3) and
(4) and
441.12, Wis. Stats., the Board of Nursing will hold a public hearing at the time and place indicated below to consider an order to repeal and recreate Chapter
N 1, relating to school approval.
Hearing Information
Date: Thursday, February 13, 2014
Time: 8:00 a.m.
Location: 1400 East Washington Avenue
Room 121A
Madison, Wisconsin
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 Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.
Place where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8935, or by email to
Sharon.Henes@wisconsin.gov. Comments must be received at or before the public hearing to be held on February 13, 2014 to be included in the record of rule-making proceedings.
Copies of Rule
Copies of this proposed rule are available upon request to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8366, Madison, Wisconsin 53708, or by email at
Sharon.Henes@wisconsin.gov.
Analysis prepared by the Department of Safety and Professional Services
Statutes interpreted
Statutory authority
Explanation of agency authority
The board shall promulgate rules for its own guidance and for the guidance of the profession to which it pertains.
Specifically, the board may establish minimum standards for schools for professional nurses and schools for licensed practical nurses, including all related clinical units and facilities, and make and provide periodic surveys and consultations to such schools. It may also establish rules to prevent unauthorized persons from practicing professional nursing. It shall approve all rules for the administration of chapter 441, Wis. Stats.
Related statute or rule
Plain language analysis
The proposed rule repeals and recreates the nursing school approval process chapter. The chapter has not been updated since 1989 and the school approval process has evolved since that time.
There are three stages to the approval process. The first stage is the authorization to plan a school of nursing. The institution will provide to the board the name and address of the controlling institution, accreditation status, statement of intent including the academic and licensure levels; evidence of the availability of clinical facilities, plan to recruit an educational administrator and faculty and the proposed timeline. The board will review the application and make a decision within two months of the completed application. The second stage is the authorization to admit students. The school of nursing will provide to the board verification of employment of an educational administrator, evidence of faculty, the school's philosophy and objectives, an overview of the curriculum, verification of student policies, the ability for the students to acquire clinical skills and an updated timeline. The board will review the materials and make a decision with two months. The last stage is approval of the school of nursing. A school may apply for approval upon graduation of the first class, but no later than graduation of the third class (class is defined as a 12 month period). The board may conduct a site survey. The decision on the application will occur within two months of the completed site survey or the completed application whichever is later. The board may grant approval, conditional approval or deny approval. If the board grants conditional approval, the board will state the basis and the school of nursing may not admit any new students into the school until the board meets the standard and receives full approval. If the school of nursing is denied approval, the school will receive a notice of denial and will take steps to close the school. The school may request a hearing and the closure of the school may be postponed during the appeals process.
Out of state schools operating in the state of Wisconsin will be approve and continual to be approved if the school is approved by the board of the state where the school is located and the school has approved nursing accreditation.
A school of nursing must receive national nursing accreditation within 3 years of school approval and all schools which already have approval as of July 1, 2014, must have accreditation by July 1, 2017. Failure to maintain nursing accreditation will result in loss of school approval.
School of nursing standards include:
• The institution shall have legal responsibility for overall conduct of the school of nursing.
•
The educational administrator will have a license or privilege to practice nursing in Wisconsin, a graduate degree with a major in nursing, knowledge of learning principles for adult education or 2 years experience as an instructor in a nursing education program within the last 5 years and current knowledge of nursing practice.
•
Faculty will have a license or privilege to practice nursing in Wisconsin. Professional nursing faculty members will have a graduate degree with a major in nursing; practical nursing faculty members will have a baccalaureate degree with a major in nursing.
•
If a school of nursing is unable to have faculty whom meeting the standards, the school may apply to the board for a faculty exception.
•
Curriculum will enable to student to develop the knowledge, skills and abilities necessary for competent nursing practice expected at the level of licensure. It will be revised as necessary to reflect advances in health care and its delivery.
•
There will be clinical learning experiences in a variety of clinical or simulated settings.
•
Preceptors will be approved by the faculty of the school of nursing and have clear roles and responsibilities. The preceptors will have an unencumbered license or privilege to practice in Wisconsin.
•
The school of nursing will implement a plan for ongoing evaluation.
The national council licensure exam (NCLEX) pass rate standards for the school is one of the following
•
A minimum of 80% of first time test takers within 6 months of graduation
•
A minimum of 80% of all students taking the NCLEX and a plan to meet the first time test taker standard.
Failure to meet the standard will result in a warning letter and school of nursing to submit an institutional plan for improvement of the NCLEX pass rate. The school of nursing will submit progress reports until the standard is met.
A school of nursing will submit annual self-evaluation reports, all documents submitted to or received from nursing accreditation agencies and notify the board if there is a change in accreditation status. Failure to maintain nursing accreditation will result in loss of school approval. The board may review the school of nursing to determine whether the standards are being met in the following situations:
•
Change in accreditation status
•
Nursing accreditation reports indicate accreditation standards are not being met
•
Complaints received regarding the school
•
Failure to meet NCLEX pass rate standard for more than 2 consecutive years
•
Violation of any rules under this chapter.
The review of the school may include a site survey, self-study report or a progress report. If standards are not being met, the school of nursing shall submit a plan and progress reports as requested. The board may withdraw board approval if the school continues to not meet standards.
Closure of a school of nursing involves providing a placement for students and indicating where the academic records and transcripts will be stored and how access to those records will be maintained.
Nurse refresher courses are designed for nurses who have been out of practice for more than five years. The course will contain theory, skills labs and clinical experience. The board will review nurse the curriculum for inclusion on a listing of approved courses. The student who participates in a non-approved course may submit curriculum for approval.
Summary of, and comparison with, existing or proposed federal regulation
None
Comparison with rules in adjacent states
Illinois: Illinois program approval process includes: a letter of intent, a feasibility study, hiring of a nurse administrator, submission of a curriculum proposal, and a site survey. Continued approval is based upon annual evaluation reports, full routine site visits and maintaining a NCLEX pass rate of 75% of first time test takers. Major and minor curricular changes are reported to the board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications (allows for variances to faculty standards) and student standards.
Iowa: Iowa program approval process includes: first step involves an application with information regarding the controlling institution and needs assessment; second step involves verification of employment of the head of program, submission of program's philosophy and objectives, curriculum plan, letter of intent from clinical facilities, evidence of provision of faculty, proposed budget and timeframe for implementation; next step is interim approval based upon program proposal and site visit; final approval is upon graduation of first class and NCLEX pass rate results. Provisional approval may be granted to program until standards are met. Change of controlling institution and changes in administrative personnel in the program. The program shall submit annual reports. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications, student standards and evaluation of the program. NCLEX pass rate standard is a minimum of 95% of the national passing percentage based upon first time test takers within 6 months of graduation.
Michigan: Michigan program approval process includes: the first step requires submission of a letter of intent, evidence of funding and other support, copy of Michigan Department of Career Development approval (if necessary), evidence of availability of clinical experiences, proposed number of students, proposed first date of admission, plans for recruiting director of the program and faculty and a site visit; initial approval involves a self-student report and annual progress reports; full approval is after the graduation of the 2nd class, but no later than graduation of the 4th class (a class for each 12 month period) and requires submission of a self-study report and a site visit. Every 4 years the school shall submit a self-study report and accredited schools shall follow the schedule of the accrediting agency. Program changes shall be submitted to the board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications (allows for variances to faculty standards), student standards, and evaluation of the program. NCLEX pass rate standard is 75% of first time test takers.
Minnesota: Minnesota program approval process includes: Phase 1 requires letter of intent including institution information, timetable for development and implementation, documentation of availability of academic facilities, impact on nursing programs in the area; Phase II involves a site visit and documentation of compliance with educational standards in order to be granted initial approval; Phase III is full approval and continual approval based upon meeting the minimum first time NCLEX success rate and acquiring national nursing education accreditation. Minnesota requires surveys of all schools on a periodic basis to maintain approval. NCLEX pass rate standard is 75% of first time test takers. All schools must be accredited by 2016. Annual reports shall be submitted to the Board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, clinical standards, nurse administrator and faculty qualifications, student standards, and evaluation of the program. The curriculum standard is the program must provide diverse learning activities that are consistent with program outcomes. Minnesota has an approval process for schools applying for innovative approaches which may require exemption from certain rules.
Summary of factual data and analytical methodologies
The Board considered the National Council of State Boards of Nursing's model practice rules and the rules and processes of our neighboring states.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
The rule was posted for 14 days for economic impact comments and none were received.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
These proposed rules do not have an economic impact on small businesses, as defined in s.
227.114 (1), Stats.
Agency Contact Person
Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-261-2377; email at
Sharon.Henes@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original ⍽ Updated ⍽ Corrected
|
2. Administrative Rule Chapter, Title and Number
|
N 1
|
3. Subject
|
School of Nursing Approval
|
4. Fund Sources Affected
|
5. Chapter 20, Stats. Appropriations Affected
|
⍽ GPR
⍽ FED
⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
|
20.165(1)(g)
|
6. Fiscal Effect of Implementing the Rule
|
⍽ No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
X Increase Costs
X Could Absorb Within Agency's Budget
⍽ Decrease Cost
|
7. The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes
⍽ No
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9. Policy Problem Addressed by the Rule
|
This rule updates the school of nursing approval process. The current rules have been in place since 1985 and are not adequately addressing the changes in education.
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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This rule was posted for economic comments for a period of 14 days and no comments were received.
|
11. Identify the local governmental units that participated in the development of this EIA.
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None
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12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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The benefit is to provide clarity and updates to the school of nursing approval process. The proposed rules also decrease the duplication between approval and national nursing school accreditation.
|
14. Long Range Implications of Implementing the Rule
|
The benefit is to provide clarity and updates to the school of nursing approval process. The proposed rules also decrease the duplication between approval and national nursing school accreditation.
|
15. Compare With Approaches Being Used by Federal Government
|
None
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Illinois: Illinois program approval process includes: a letter of intent, a feasibility study, hiring of a nurse administrator, submission of a curriculum proposal, and a site survey. Continued approval is based upon annual evaluation reports, full routine site visits and maintaining a NCLEX pass rate of 75% of first time test takers. Major and minor curricular changes are reported to the board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications (allows for variances to faculty standards) and student standards.
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Iowa: Iowa program approval process includes: first step involves an application with information regarding the controlling institution and needs assessment; second step involves verification of employment of the head of program, submission of program's philosophy and objectives, curriculum plan, letter of intent from clinical facilities, evidence of provision of faculty, proposed budget and timeframe for implementation; next step is interim approval based upon program proposal and site visit; final approval is upon graduation of first class and NCLEX pass rate results. Provisional approval may be granted to program until standards are met. Change of controlling institution and changes in administrative personnel in the program. The program shall submit annual reports. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications, student standards and evaluation of the program. NCLEX pass rate standard is a minimum of 95% of the national passing percentage based upon first time test takers within 6 months of graduation.
Michigan: Michigan program approval process includes: the first step requires submission of a letter of intent, evidence of funding and other support, copy of Michigan Department of Career Development approval (if necessary), evidence of availability of clinical experiences, proposed number of students, proposed first date of admission, plans for recruiting director of the program and faculty and a site visit; initial approval involves a self-student report and annual progress reports; full approval is after the graduation of the 2nd class, but no later than graduation of the 4th class (a class for each 12 month period) and requires submission of a self-study report and a site visit. Every 4 years the school shall submit a self-study report and accredited schools shall follow the schedule of the accrediting agency. Program changes shall be submitted to the board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, curriculum standards, clinical standards, nurse administrator and faculty qualifications (allows for variances to faculty standards), student standards, and evaluation of the program. NCLEX pass rate standard is 75% of first time test takers
Minnesota: Minnesota program approval process includes: Phase 1 requires letter of intent including institution information, timetable for development and implementation, documentation of availability of academic facilities, impact on nursing programs in the area; Phase II involves a site visit and documentation of compliance with educational standards in order to be granted initial approval; Phase III is full approval and continual approval based upon meeting the minimum first time NCLEX success rate and acquiring national nursing education accreditation. Minnesota requires surveys of all schools on a periodic basis to maintain approval. NCLEX pass rate standard is 75% of first time test takers. All schools must be accredited by 2016. Annual reports shall be submitted to the Board. Closure of the school involves responsibility for assisting students in transferring and notification of location of records storage. The standards for the school include institutional requirements, clinical standards, nurse administrator and faculty qualifications, student standards, and evaluation of the program. The curriculum standard is the program must provide diverse learning activities that are consistent with program outcomes. Minnesota has an approval process for schools applying for innovative approaches which may require exemption from certain rules.
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17. Contact Name
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18. Contact Phone Number
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Sharon Henes
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(608) 261-2377
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This document can be made available in alternate formats to individuals with disabilities upon request.
Notice of Hearing
Safety and Professional Services —
Pharmacy Examining Board
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Pharmacy Examining Board in s.15.08 (5) (b), 450.19 (2), and 961.31, Wis. Stats., and interpreting s.
450.19, Wis. Stats., the Pharmacy Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal sections
Phar 18.04 (3) (intro),
18.04 (3) (k),
18.11 (3),
18.11 (4),
18.11 (9) (a),
18.11 (9) (b), and
18.11 (9) (c); to renumber and amend section
Phar 18.04 (2); to amend sections
Phar 18.02 (8) (a),
18.02 (9),
18.02 (15) (intro),
18.02 (17),
18.04 (title),
18.04 (3) (L),
18.04 (3) (m),
18.04 (3) (n),
18.04 (4),
18.05 (1),
(1) (note),
(2) (note),
(3) (b) (note), and
(4),
18.06 (2),
(3) (b) (note),
(6) (b) (note), and
(8),
18.07,
18.08 (1) (a) and
(b) (note),
18.09,
18.10 (1) (intro),
(2) (intro.) and
(b),
(3),
(6), and
(7),
18.11 (6) (intro) and
(10) (c) (note),
18.12 (4), and
18.14 (1) (intro); and to create sections
Phar 18.02 (11m),
(15g), and
(15r),
18.04 (2) (gg) and
(gr), relating to the prescription drug monitoring program.
Hearing Information
Date: Wednesday, February 12, 2014
Time: 9:00 a.m.
Location: 1400 East Washington Avenue
Room 121A
Madison, Wisconsin
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 Safety and Professional Services, Division of Policy Development, P.O. Box 8366, Madison, Wisconsin 53708. Written comments must be received at or before the public hearing to be included in the record of rule-making proceedings.
Place where Comments are to be Submitted and Deadline for Submission
Comments may be submitted to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, WI 53708-8935, or by email to
Sharon.Henes@wisconsin.gov. Comments must be received at or before the public hearing to be held on February 12, 2014 to be included in the record of rule-making proceedings.
Copies of Rule
Copies of this proposed rule are available upon request to Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, P.O. Box 8366, Madison, Wisconsin 53708, or by email at
Sharon.Henes@wisconsin.gov.
Analysis prepared by the Department of Safety and Professional Services
Statutes interpreted
Statutory authority
Explanation of agency authority
The board has authority to promulgate rules for the guidance of the profession and to interpret the provisions of the statutes it enforces. The board also has authority to promulgate rules relating to the manufacture, distribution and dispensing of controlled substances within Wisconsin.
Specifically, the legislature directs the board to establish to govern the prescription drug monitoring program.
Related statute or rule
Plain language analysis
This proposed rule modifies the ch.
Phar 18 to improve the efficiency of the Prescription Drug Monitoring Program (PDMP) by ensuring consistency between the language of the rule and how PDMP functions.
Sections 1, 2, 3, 4, 5, and 6 clarify and simplify definitions. A dispenser is a pharmacy. Dispenser delegate is a managing pharmacist or an agent or employee of a practitioner who has the delegated responsibility for data compilation and submission to PDMP. Managing pharmacist, pharmacist and practitioner definitions are identical to definitions in the statutes. Pharmacist delegate is an agent of a pharmacist who has been delegated access to PDMP information.
Section 7 clarifies the title of s.
Phar 18.04 to “compilation of dispensing data".
Section 8 changes the “he or she" to dispenser. It also becomes an introduction paragraph to the items currently listed under s.
Phar 18.04 (3) (intro).
Section 9 repeals the introduction section. Therefore all of the times currently listed under it are now under new introduction paragraph created by Section 8.
Section 10, 11, 12 amends the dispensing data. The classification codes for payment type and refill number are added. The quantity prescribed is no longer required data. There is clarification of how to record an animal patient's name, address and birthdate.
Sections 13, 17, and 21 adds dispenser delegate as subject to discipline for failing to compile required dispensing data.
Section 14 clarifies the rule that unless exempt, a dispenser shall electronically submit data.
Sections 15, 16 , 19, 20, 24, and 35 update the P.O. Box number for the Department in all the notes in ch.
Phar 18 which reference the Department's address.
Section 18 clarifies that the dispenser shall submit a zero report for each 7 day period which the dispenser did not dispense a monitored prescription drug.
Section 22 clarifies if incorrect dispensing data had been submitted, the dispenser shall submit the correct information within 7 days.
Section 23 removes the “he or she" reference and inserts “dispenser".
Sections 25, 26, 27, 29, and 30 remove “dispenser" and “dispenser delegate" throughout ss.
Phar 18.09 and
18.10 (1) (intro),
(2) (b),
(3),
(6), and
(7) and replace with the terms “pharmacist" and “pharmacist delegate".
Section 28 requires a specific statute or rule to be given when requesting a review.
Section 31 repeals the requirement for board to disclose PDMP information to staff of a relevant agency in another state who are authorized to access confidential patient health care records under ss.
146.82 and
450.19, Stats. It also repeals the requirement to disclose minimum amount of PDMP information necessary to health care facility staff committees or accreditation or health care services review organizations.
Section 32 adds that the board will disclose the minimum amount of PDMP information necessary to staff who are investigating pharmacists and pharmacist delegates.
Section 33 clarifies that the board may disclose de-identified PDMP information which does not identify any patient upon request.
Section 34 repeals the requirements for a researcher to obtain PDMP information.
Section 36 adds pharmacist and pharmacist delegate to the list of people which the board maintains a log for their access to PDMP information.
Section 37 clarifies relevant agencies in other jurisdictions with prescription drug monitoring programs by adding the word “state."
Summary of, and comparison with, existing or proposed federal regulation
None. Prescription drug monitoring programs are operated by the state jurisdictions.
Comparison with rules in adjacent states
Illinois: The statutes and administrative rules governing the Illinois Prescription Monitoring Program require dispensers to submit to a database similar information regarding the prescribing and dispensing of controlled substances. Dispensers are required to submit the method of payment the patient used for a prescription. See 720 Illinois Compiled Statutes 570/316-21 and Illinois Administrative Code Title 77, Chapter X, Subchapter e, Part 2080. Dispensers are not required to submit refill information.
Iowa: The statutes and administrative rules governing the Iowa Prescription Monitoring Program require dispensers to submit to a database similar information regarding the prescribing and dispensing of controlled substances. Dispensers are required to submit refill information and the method of payment the patient used for a prescription.
See Iowa Code §
124.551-58 and Iowa Administrative Code Title 657, Chapter
37.
Michigan: The statutes, administrative rules, and requirements for the Michigan Automated Prescription System require dispensers to submit to a database similar information regarding the prescribing and dispensing of controlled substances. Dispensers are required to submit refill information and the method of payment the patient used for a prescription.
See Michigan Public Health Code §
333.7333and Michigan Administrative Code R. 338.471, and “List of Required Fields," Michigan Automated Prescription System (MAPS).
See also http://www.michigan.gov/documents/lara/lara_MAPS_ASAP2009_ListofRequiredFields_365562_7.pdf, accessed on Dec. 17, 2013.
Minnesota: The statutes governing the Minnesota Prescription Monitoring Program require dispensers to submit to a database similar information regarding the prescribing and dispensing of controlled substances on a daily basis. Dispensers are not required to submit refill information or the method of payment the patient used for a prescription. See Minnesota Statute 152.126.
Summary of factual data and analytical methodologies
The Board received feedback while developing and deploying the prescription drug monitoring program and gained considerable expertise in ways to improve it once it became fully operational.
The Board is aware that currently there are some provisions which create inefficiencies and ambiguities that the PDMP has to overcome to be as effective of a tool to combat prescription drug misuse and abuse as it can be. This proposed rule corrects and updates those provisions.
All the modifications are based on feedback from stakeholders and the prescription drug monitoring program uses as well as other information obtained while developing and deploying the prescription drug monitoring program.
Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis
This rule was posted for economic impact comments for 14 days and none were received.
Fiscal Estimate and Economic Impact Analysis
The Fiscal Estimate and Economic Impact Analysis is attached.
Initial Regulatory Flexibility Analysis or Summary
These proposed rules do not have an economic impact on small businesses, as defined in s.
227.114 (1), Stats.
Agency Contact Person
Sharon Henes, Administrative Rules Coordinator, Department of Safety and Professional Services, Division of Board Services, 1400 East Washington Avenue, Room 151, P.O. Box 8366, Madison, Wisconsin 53708; telephone 608-261-2377; email at
Sharon.Henes@wisconsin.gov.
STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
|
Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
|
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
|
1. Type of Estimate and Analysis
|
X Original ⍽ Updated ⍽ Corrected
|
2. Administrative Rule Chapter, Title and Number
|
Phar 18
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3. Subject
|
Prescription Drug Monitoring Program updates
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4. Fund Sources Affected
|
5. Chapter 20, Stats. Appropriations Affected
|
⍽ GPR
⍽ FED X PRO
⍽ PRS
⍽ SEG ⍽ SEG-S
|
20.165(1)(g) and 20.165(1)(hg)
|
6. Fiscal Effect of Implementing the Rule
|
⍽ No Fiscal Effect
⍽ Indeterminate
|
⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
|
X Increase Costs
X Could Absorb Within Agency's Budget
⍽ Decrease Cost
|
7. The Rule Will Impact the Following (Check All That Apply)
|
⍽ State's Economy
⍽ Local Government Units
|
⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
|
8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes X No
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9. Policy Problem Addressed by the Rule
|
The Board is aware that currently there are provisions which create inefficiencies and ambiguities that the prescription drug monitoring program has to overcome to be as effective of a tool to combat prescription drug misuse and abuse as it can be. This proposed rule corrects and updates those provisions.
|
10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
|
Economic impact comments were solicited by posting on Department and Administrative Rules websites for 14 days and no comments were received. Stakeholders had provided feedback during the implementation of changes which should be made to the current rules.
|
11. Identify the local governmental units that participated in the development of this EIA.
|
None
|
12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
|
This rule will not have an economic or fiscal impact on specific businesses, business sectors, public utility rate payers, local governmental units or the state's economy as a whole.
|
13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
|
The Board received feedback while developing and deploying the prescription drug monitoring program (PDMP) and gained considerable expertise in ways to improve it once it became fully operational. The benefit to implementing the rule is to make those changes.
The alternative is to not make the modifications, which would not enable the Board to improve the PDMP based on information obtained while developing and deploying the PDMP and the feedback of stakeholders and PDMP users.
|
14. Long Range Implications of Implementing the Rule
|
The long range benefit is to have an effective prescription drug monitoring program.
|
15. Compare With Approaches Being Used by Federal Government
|
None
|
16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
|
Our neighboring states require dispensers to submit to a database similar information regarding the prescribing and dispensing of controlled substances.
|
17. Contact Name
|
18. Contact Phone Number
|
Sharon Henes
|
(608) 261-2377
|
This document can be made available in alternate formats to individuals with disabilities upon request.
