AB557: Bill Text

AB557,50,22 Chapter 140 Oil company franchise fee

AB557,50,23 140.01 Definitions. In this chapter:

AB557,50,24 (1) "Average weighted retail price" means the following:

AB557,51,2 (a) For motor vehicle fuel received from December 1, 1995, to March 31, 1997, $1.10 per gallon.

AB557,51,7 (b) For motor vehicle fuel received on April 1, 1997, and thereafter, the average weighted price per gallon, for motor vehicle fuel, sold at retail in this state, as determined by a method promulgated by the department by rule, except that the average weighted price may be no lower than $1.10 as indexed and the average weighted price may be no more than $1.30 as indexed.

AB557,51,9 (2) "Consumer price index" means the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor.

AB557,51,10 (3) "Diesel fuel" has the meaning given in s. 78.005 (5).

AB557,51,11 (4) "Department" means the department of revenue.

AB557,51,12 (5) "Export" has the meaning given in s. 78.005 (6).

AB557,51,13 (6) "Gasoline" has the meaning given in s. 78.005 (7).

AB557,51,15 (7) "Indexed" means adjusted as of April 1 to reflect the percentage change in the annual average consumer price index during the previous year.

AB557,51,16 (8) "Motor vehicle fuel" means gasoline or diesel fuel.

AB557,51,17 (9) "Received" means received under s. 78.07.

AB557,51,18 (10) "Supplier" has the meaning given under s. 78.005 (14).

AB557,51,22 140.02 Imposition. (1) Except as provided in sub. (2), there is imposed a fee at the rate of 3.5% of the average weighted retail price on all motor vehicle fuel received by a supplier for sale in this state, for sale for shipment to this state or for shipment to this state.

AB557,51,23 (2) The fee imposed in sub. (1) does not apply to the following:

AB557,52,2 (a) Motor vehicle fuel that is shipped from storage at a refinery, marine terminal, pipeline terminal, pipeline tank farm or place of manufacture to a person for storage at another refinery, marine terminal, pipeline terminal, pipeline tank farm or place of manufacture.

AB557,52,4 (b) Motor vehicle fuel that is exported by a person who is licensed under s. 78.09 or 140.03 (5).

AB557,52,5 (c) Diesel fuel that is dyed under s. 78.01 (2p).

AB557,52,14 140.025 Refunds. Any person who is eligible for an exemption under s. 78.01, or a refund under s. 78.75, because the person uses motor vehicle fuel to operate a motor vehicle elsewhere than on the public highways and for the purpose of farming, as defined in section 464 (e) 1 of the internal revenue code, is eligible for a refund equal to the fee under this chapter payable by the supplier on the motor vehicle fuel that the person purchases at retail for those purposes. Section 78.75 (1m) (a) 3. and (b) to (f) and (2), as it applies to refunds under ch. 78, applies to refunds under this section. The penalties under s. 78.73 (1) (d), as they apply to claims for refund under s. 78.75, apply to claims for refunds under this section.

AB557,52,16 140.03 Administration. (1) The department shall administer the fee under this chapter.

AB557,52,18 (2) Sections 78.65 to 78.74 and 78.79 to 78.81 as they apply to the taxes under ch. 78 apply to the fee under this chapter.

AB557,52,21 (3) Persons who are liable for the fee under this chapter shall state the number of gallons of motor vehicle fuel on which the fee is due and the amount of their liability for the fee in the reports under s. 78.12 (1) to (3).

AB557,52,23 (4) The requirements for payment of the motor vehicle fuel tax under s. 78.12 (5) apply to the fee under this chapter.

AB557,53,5 (5) No person may ship petroleum products into this state unless that person either has a license under s. 78.09 or obtains an oil company franchise license from the department by filing with the department an application prescribed and furnished by the department and verified by the owner of the business if the owner is an individual, by a member if the owner is an unincorporated association, by a partner if the owner is a partnership or by the president and secretary if the owner is a corporation.

AB557,53,16 (6) (a) To protect the revenues of this state, the department may require any person who is liable to the department for the fee under this chapter to place with it security in the amount that the department determines. The department may increase or decrease the amount of the security, but that amount may not exceed 3 times the person's average monthly liability for the fee under this chapter as estimated by the department. If any person fails to provide that security, the department may refuse to issue a license under sub. (5) or s. 78.09 or may revoke the person's license under sub. (5) or s. 78.09. If any taxpayer is delinquent in the payment of the fee under this chapter, the department may, upon 10 days' notice, recover the fee, interest, penalties, costs and disbursements from the person's security. The department may not pay interest on any security deposit.

AB557,53,19 (b) The security required under par. (a) may be a surety bond furnished to the department and payable to this state. The department shall prescribe the form and contents of the bond.

AB557,54,4 (c) The surety of a bond under par. (b) may conditionally cancel the bond by filing written notice with the person who is liable for the fee under this chapter and with the department. A surety who files that notice is not discharged from any liability that has accrued or from any liability that accrues within 60 days after the filing. If the person who is liable for the fee under this chapter does not, within 60 days after receiving the notice, file with the department a new bond that is satisfactory to the department, the department shall revoke the person's license under sub. (5) or s. 78.09. If the person furnishes a new bond, the department shall cancel and surrender the old bond when it is satisfied that all liability under the old bond has been discharged.

AB557,54,9 (d) If the liability on the bond is discharged or reduced or if the department determines that the bond is insufficient, the department shall require additional surety or new bonds. If any person who is liable for the fee under this chapter fails to file that additional bond within 5 days after the department provides written notice, that person's license under sub. (5) or s. 78.09 is revoked.

AB557,54,12 (7) On April 1, 1996, and each April 1 thereafter, the department shall calculate the oil company franchise fee on a cents-per-gallon basis. That calculation shall reflect any change in the rate for that fee that occurs on that date.

AB557, s. 108 Section 108. 166.20 (7g) of the statutes is repealed.

AB557, s. 109 Section 109. 218.01 (2) (bd) 1g. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB557,54,25 218.01 (2) (bd) 1g. The manufacturer, distributor or importer shall send a notice of discontinuation or cancellation by certified mail, and forward a copy of the notice to the department of transportation, not less than 20 days before the effective date of discontinuation or cancellation of the agreement, if the dealer or distributor fails to conduct its customary sales and service operations during its customary business hours for 7 consecutive business days unless the failure is caused by an act of God, by work stoppage or delays due to strikes or labor disputes or other reason beyond the dealer's or distributor's control or by an order of the department of transportation or the office of the commissioner of transportation division of hearings and appeals.

AB557, s. 110 Section 110. 218.01 (2) (bd) 1r. of the statutes is amended to read:

AB557,55,3 218.01 (2) (bd) 1r. The notice served upon a motor vehicle dealer under subds. 1. and 1g. is not effective unless it conspicuously displays the following statement:

AB557,55,4 NOTICE TO DEALER

AB557,55,14 YOU HAVE THE RIGHT TO: 1) MEDIATE IF YOU OPPOSE THE PROPOSED TERMINATION OR NONRENEWAL OF YOUR FRANCHISE AND 2) A HEARING BY THE OFFICE OF THE COMMISSIONER OF TRANSPORTATION division of hearings and appeals IF MEDIATION DOES NOT RESOLVE THE DISPUTE. TO PRESERVE THESE RIGHTS, YOU MUST TAKE CERTAIN STEPS ON OR BEFORE THE DATE THAT THE PROPOSED TERMINATION OR NONRENEWAL TAKES EFFECT. FOR FURTHER INFORMATION, CONSULT YOUR ATTORNEY OR CALL THE DEALER SECTION, WISCONSIN DEPARTMENT OF TRANSPORTATION, AT .... (insert area code and telephone number).

AB557, s. 111 Section 111. 218.01 (2c) (c) of the statutes is amended to read:

AB557,55,23 218.01 (2c) (c) The ownership, operation or control of a dealership by a manufacturer, importer or distributor, or subsidiary thereof, which does not meet the conditions under par. (a) or (b), if the office of the commissioner of transportation division of hearings and appeals determines, after a hearing on the matter at the request of any party, that there is no prospective independent dealer available to own and operate the dealership in a manner consistent with the public interest and that meets the reasonable standard and uniformly applied qualifications of the manufacturer, importer or distributor.

AB557, s. 112 Section 112. 218.01 (3) (a) 24. of the statutes is amended to read:

AB557,56,7 218.01 (3) (a) 24. Being a manufacturer, importer or distributor who fails to comply with the procedures in sub. (3x) regarding a dealer's request for approval of a change of ownership or executive management, transfer of its dealership assets to another person, adding another franchise at the same location as its existing franchise, or relocation of a franchise or who fails to comply with an order of the office of the commissioner of transportation division of hearings and appeals issued under sub. (3x).

AB557, s. 113 Section 113. 218.01 (3x) (b) 2. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB557,56,25 218.01 (3x) (b) 2. An affected grantor who does not approve of the proposed action shall, within 30 days after receiving the dealer's written notice of the proposed action or within 30 days after receiving all the information specified in a written list served on the dealer under subd. 1., whichever is later, file with the department of transportation and serve upon the dealer a written statement of the reasons for its disapproval. The reasons given for the disapproval or any explanation of those reasons by the manufacturer, distributor or importer shall not subject the manufacturer, distributor or importer to any civil liability unless the reasons given or explanations made are malicious and published with the sole intent to cause harm to the dealer or a transferee of the dealer. Failure to file and serve a statement within the applicable period shall, notwithstanding the terms of any agreement, constitute approval of the proposed action by the grantor. If an affected grantor files a written statement within the applicable period, the dealer may not voluntarily undertake the proposed action unless it receives an order permitting it to do so from the office of the commissioner of transportation division of hearings and appeals under par. (c) 2.

AB557, s. 114 Section 114. 218.01 (3x) (b) 3. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB557,57,10 218.01 (3x) (b) 3. A dealer who is served with a written statement by an affected grantor under subd. 2. may file with the department of transportation and the office of the commissioner of transportation division of hearings and appeals and serve upon the affected grantor a complaint for the determination of whether there is good cause for permitting the proposed action to be undertaken. The office of the commissioner of transportation division of hearings and appeals shall promptly schedule a hearing and decide the matter. The proposed action may not be undertaken pending the determination of the matter.

AB557, s. 115 Section 115. 218.01 (3x) (c) 1. (intro.) of the statutes is amended to read:

AB557,57,14 218.01 (3x) (c) 1. (intro.) In determining if there is good cause for permitting a proposed action to be undertaken, the office of the commissioner of transportation division of hearings and appeals may consider any relevant factor including:

AB557, s. 116 Section 116. 218.01 (3x) (c) 2. of the statutes is amended to read:

AB557,57,22 218.01 (3x) (c) 2. The decision of the office of the commissioner of transportation division of hearings and appeals shall be in writing and shall contain findings of fact and a determination of whether there is good cause for permitting the proposed action to be undertaken. The decision shall include an order that the dealer be allowed or is not allowed to undertake the proposed action, as the case may be. The order may require fulfillment of appropriate conditions before and after the proposed action is undertaken.

AB557, s. 117 Section 117. 218.01 (7m) (a) of the statutes is amended to read:

AB557,58,8 218.01 (7m) (a) A licensee may not file a complaint or petition with the office of the commissioner of transportation division of hearings and appeals or bring an action under sub. (9) (a), based on an alleged violation of this section by any other licensee or pursuant to sub. (3) (f) or (fm), (3c) or (3x), unless the licensee serves a demand for mediation upon the other licensee before or contemporaneous with the filing of the complaint or petition or the bringing of the action. A demand for mediation shall be in writing and served upon the other licensee by certified mail at an address designated for that licensee in the licensor's records. The demand for mediation shall contain a brief statement of the dispute and the relief sought by the licensee filing the demand.

AB557, s. 118 Section 118. 218.01 (7m) (c) of the statutes is amended to read:

AB557,58,25 218.01 (7m) (c) The service of a demand for mediation under par. (a) shall stay the time for the filing of any complaint or petition with the office of the commissioner of transportation division of hearings and appeals or for bringing an action under sub. (9) (a), based on an alleged violation of this section by the other licensee or pursuant to sub. (3) (f) or (fm), (3c) or (3x), until the representatives of both licensees have met with a mutually selected mediator for the purpose of attempting to resolve the dispute. If a complaint or petition is filed before the meeting, the office of the commissioner of transportation division of hearings and appeals or the court shall enter an order suspending the proceeding or action until the meeting has occurred and may, upon the written stipulation of all parties to the proceeding or action that they wish to continue to mediate under this subsection, enter an order suspending the proceeding or action for as long a period as the commissioner of transportation division of hearings and appeals or court considers to be appropriate. A suspension order issued under this paragraph may be revoked upon motion of any party or upon motion of the office of the commissioner of transportation division of hearings and appeals or the court.

AB557, s. 119 Section 119. 340.01 (7m) of the statutes is amended to read:

AB557,59,6 340.01 (7m) "Commercial driver license" means a license issued to a person by this state or another jurisdiction which is in accordance with the requirements of the federal commercial motor vehicle safety act of 1986, 49 USC 2701 to 2716 31301 to 31317, or by Canada or Mexico, and which authorizes the licensee to operate certain commercial motor vehicles.

AB557, s. 120 Section 120. 340.01 (7r) of the statutes is amended to read:

AB557,59,12 340.01 (7r) "Commercial driver license information system" means the information system established pursuant to the federal commercial motor vehicle safety act of 1986, 49 USC 2701 to 2716 31301 to 31317, to serve as a clearinghouse for information related to the licensing and identification of commercial motor vehicle drivers.

AB557, s. 121 Section 121. 341.08 (2) (am) of the statutes is created to read:

AB557,59,15 341.08 (2) (am) If the applicant is a natural person registering a farm truck under s. 341.26 (3) (a) 1., the applicant's social security number.

AB557, s. 122 Section 122. 341.08 (2) (cm) of the statutes is created to read:

AB557,59,21 341.08 (2) (cm) If the applicant is registering a farm truck under s. 341.26 (3) (a) 1., certification that the applicant had at least $6,000 in gross farm profits, as defined in s. 71.58 (4), in at least one of the 2 previous taxable years, or that the applicant expects to have at least $6,000 in gross farm profits, as defined in s. 71.58 (4), in the current taxable year.

AB557, s. 123 Section 123. 341.08 (4) of the statutes is amended to read:

AB557,60,6 341.08 (4) Applications for renewal of registration shall contain the information required in sub. (2) for original applications or such parts thereof as the department deems necessary to assure the proper registration of the vehicle, except that all applications for renewal of registration of farm trucks under s. 341.26 (3) (a) 1. shall contain the information specified in sub. (2) (am) and (cm). The department may require that applications for renewal of registration be accompanied by the certificate of title issued for the vehicle only when the true ownership or proper registration of the vehicle is in doubt and cannot be resolved from records maintained by the department.

AB557, s. 124 Section 124. 341.08 (8) of the statutes is created to read:

AB557,60,11 341.08 (8) The department may not disclose a social security number obtained from an applicant under sub. (2) (am) to any person except to the department of revenue for the sole purpose of determining the applicant's eligibility to register the farm truck under s. 341.26 (3) (a) 1.

AB557, s. 125 Section 125. 341.14 (6r) (b) 2. of the statutes is amended to read:

AB557,60,15 341.14 (6r) (b) 2. An additional fee of $10 $15 shall be charged for the issuance or reissuance of the plates for special groups specified under par. (f) 1. to 34., 48., 49. and 51.

AB557, s. 126 Section 126. 341.14 (6r) (b) 3. of the statutes is repealed.

AB557, s. 127 Section 127. 341.14 (6r) (b) 4. of the statutes is amended to read:

AB557,61,2 341.14 (6r) (b) 4. An additional fee of $20 that is in addition to the fee under subd. 2. or 3. shall be charged for the issuance or renewal of a plate issued on an annual basis for a special group specified under par. (f) 35. to 47. An additional fee of $40 that is in addition to the fee under subd. 2. or 3. shall be charged for the issuance or renewal of a plate issued on a biennial basis for a special group specified under par. (f) 35. to 47. if the plate is issued or renewed during the first year of the biennial registration period or $20 for the issuance or renewal if the plate is issued or renewed during the 2nd year of the biennial registration period. The fee under this subdivision is deductible as a charitable contribution for purposes of the taxes under ch. 71.

AB557, s. 128 Section 128. 341.21 of the statutes is created to read:

AB557,61,9 341.21 Registration and title transactions by dealers. The department may contract with a motor vehicle dealer for services relating to the processing or distribution of original or renewal registrations under this chapter or certificates of title under ch. 342. The department may not compensate a motor vehicle dealer for services provided under this section. A contract with a motor vehicle dealer shall contain the following provisions:

AB557,61,12 (1) The amount of fees, if any, that the motor vehicle dealer may charge a person for services relating to the processing or distribution of an original or renewal registration or a certificate of title.

AB557,61,15 (2) Within 7 business days after the completion of an application, the motor vehicle dealer shall process the application and submit any required fees and other documentation to the department.

AB557,61,17 (3) The motor vehicle dealer shall retain all records related to an application for original or renewal registration or a certificate of title for at least 5 years.

AB557,61,19 (4) The department or its representative may, without any prior notice, conduct random inspections and audits of the motor vehicle dealer.

AB557, s. 129 Section 129. 341.26 (3) (a) 1. of the statutes is amended to read:

AB557,61,23 341.26 (3) (a) 1. For each farm truck having a gross weight of 12,000 pounds or less, a biennial fee of $42. Registration plates issued under this subdivision expire on the last day of February of even-numbered years.

AB557, s. 130 Section 130. 341.297 (2) of the statutes is renumbered 341.297 (2) (a) and amended to read:

AB557,62,5 341.297 (2) (a) A farm truck having a gross weight of 12,000 pounds or less, as specified in s. 341.26 (3) (a) 1. The registration period for such a farm truck begins on March 1 of an even-numbered year and ends on the last day of February of the next even-numbered year All such farm trucks shall be registered by the department according to the monthly series of registration prescribed by par. (b).

AB557, s. 131 Section 131. 341.297 (2) (b) of the statutes is created to read:

AB557,62,11 341.297 (2) (b) There are established 24 registration periods, each to be designated by a calendar month and to start on the first day of such month and end on the last day of the 24th month from the date of commencing. The department shall so administer the monthly series system of registration as to distribute the work of registering farm trucks as uniformly as practicable throughout the calendar year.

AB557, s. 132 Section 132. 341.43 of the statutes is amended to read:

AB557,62,19 341.43 Audits. The department may conduct such audits as it deems necessary to determine the adequacy of fees paid under the international registration plan or other proportional registration law or agreement and taxes and fees paid under s. 341.45. Audits shall be conducted during normal business hours. Credits shall be given for overpayments and deficiencies shall be assessed, with interest. Actual and necessary expenses incurred by an auditor, plus wages, may be assessed against the person audited.

AB557, s. 133 Section 133. 341.45 (title) of the statutes is amended to read:

AB557,62,22 341.45 (title) Importation in vehicle tanks regulated; taxes; fees; permits.

AB557, s. 134 Section 134. 341.45 (1g) (a) of the statutes is amended to read:

AB557,63,11 341.45 (1g) (a) Every Except as provided in subs. (3) and (4g), every person who purchases or obtains motor vehicle fuel or an alternate fuel outside of this state and operates any qualified motor vehicle into this state upon a highway and transports that fuel in an attached or unattached fuel supply tank for the sole purpose of operating the qualified motor vehicle shall pay the Wisconsin motor vehicle fuel or alternate fuels tax, the oil company franchise fee under ch. 140 and the oil inspection fee under s. 168.12 on the gallons consumed by the qualified motor vehicle while operated on the highways of this state. The person shall pay the tax and fees by purchasing motor vehicle fuel or alternate fuels within this state in an amount that is equivalent to the gallonage consumed while operating the qualified motor vehicle on the highways of this state, or by remitting the tax and fees directly to the department or to another jurisdiction that is a party to the international fuel tax agreement.

AB557, s. 135 Section 135. 341.45 (1g) (b) of the statutes is amended to read: