LRB-5396/1
ALL:ALL:km
1995 - 1996 LEGISLATURE
February 21, 1996 - Introduced by Senator Weeden, cosponsored by
Representative Brancel, by request of Governor Tommy G. Thompson.
Referred to Joint committee on Finance.
SB565,3,10 1An Act to repeal 13.94 (1) (o), 46.043, 46.043, 560.82 (4) (a) 3. and 562.065 (3)
2(c) 2.; to renumber 15.187 (1) (a) and 20.445 (5) (e); to renumber and amend
315.187 (1) (b), 20.143 (3) (kc), 20.380 (3) (ir), 146.59, 220.02 (7) and 560.82 (4)
4(a); to amend 13.48 (13) (a), 15.07 (1) (b) 20., 15.07 (5) (y), 15.445 (2) (title),
515.445 (2) (a), 16.61 (3) (s), 16.611 (2) (a), 16.611 (2) (c), 16.62 (1) (a), 16.62 (1)
6(b), 16.62 (1) (bm), 16.62 (1) (c), 20.143 (1) (km), 20.144 (1) (g), 20.144 (2) (g),
720.380 (2) (ip), 20.380 (2) (ms), 20.380 (2) (q), 20.435 (7) (o), 20.505 (1) (im),
820.575 (1) (i), 20.866 (1) (u), 20.923 (6) (L), 23.50 (1), 23.53 (1), 23.56 (1), 23.57
9(1) (intro.), 23.58, 23.62 (1) (intro.), 32.197, 32.25 (1), 41.41 (1) (a), 46.057 (1) and
10(2), 46.979 (2) (a), 46.98 (2) (a), 51.05 (3m), 66.023 (1) (a), 66.066 (2) (b) (intro.),
1166.066 (2) (b) 1., 66.066 (2) (b) 5., 93.20 (1), 111.71 (2), 119.23 (2) (b), 190.13,
12230.08 (2) (e) 4f., 230.08 (2) (yn), 233.04 (4) (intro.), 233.04 (7) (intro.), 233.04
13(7g) (a), 233.04 (7p) (a), 233.04 (7s), 422.505 (1) (e), 426.103, 426.104 (2) (intro.),
14562.065 (3) (b) 1., 562.065 (3) (c) 1., 562.065 (3) (c) 2g., 938.02 (15m), 938.183
15(1) (a), 939.635 (1) and 939.635 (2) (b); to repeal and recreate 20.320 (1) (t);
16to create 46.057, 146.59 (1), 146.59 (3), 233.12, 409.411 (title) and 560.82 (4)
17(a) 2. and 3. of the statutes; and to affect 1995 Wisconsin Act 27, section 9322

1and 1995 Wisconsin Act 27, section 9422; relating to: recovery of enforcement
2costs by the department of agriculture, trade and consumer protection in
3drainage district cases; transferring responsibility for administration of the
4Wisconsin consumer act; transferring responsibility for supporting the uniform
5commercial code statewide lien system; correcting references in certain
6appropriations of the department of financial institutions; the number of
7unclassified division administrator positions in the department of financial
8institutions; reversion of transferred funds to the Wisconsin development fund;
9minority business early planning projects; renumbering the appropriation for
10administrative services for regulation of industry, safety and buildings; the
11Milwaukee parental choice program; waiver of relocation payments and
12services when property is acquired by an entity vested with the power of
13eminent domain; collection of certain fees by the employment relations
14commission; payment of principal and interest on bonds issued for the clean
15water fund program; purses for horse races and pari-mutuel tax for simulcast
16races; establishing a Mendota juvenile treatment center; a plan to assure
17continued funding for the mental health institutes; transferring an
18appropriation for principal repayment and interest from the department of
19industry, labor and job development to the department of health and family
20services; changing references to low-income and at-risk child care funding;
21state involvement with certain municipal boundary changes; refunding of
22municipal bonds; a performance evaluation audit of the University of
23Wisconsin Hospitals and Clinics Authority; the initial period of the lease
24agreement and affiliation agreement between the University of Wisconsin
25System and the University of Wisconsin Hospitals and Clinics Authority; the

1contractual services agreement between the University of Wisconsin Hospitals
2and Clinics Board and the University of Wisconsin Hospitals and Clinics
3Authority; storage and management of records of the University of Wisconsin
4Hospitals and Clinics Authority; applicability of municipal ordinances and
5regulations to certain buildings, structures and facilities constructed for the
6benefit or use of local professional baseball park districts; changing the name
7of the Kickapoo valley governing board; the effective date and initial
8applicability of adjustments in certain lobbying regulation fees; railroad
9stockholder reports; granting rule-making authority; and making and
10decreasing appropriations.
Analysis by the Legislative Reference Bureau
Agriculture
Current law authorizes a court to order a defendant to pay enforcement costs
incurred by the department of agriculture, trade and consumer protection (DATCP)
in cases under most of the laws that DATCP enforces. This bill authorizes a court
to order a defendant to pay DATCP's enforcement costs in cases under the drainage
district laws.
Commerce and economic development
Financial institutions
Under the 1995-97 biennial budget act, the administrator of the Wisconsin
consumer act is changed from the commissioner of banking to the division of
banking. The division of banking is attached to the department of financial
institutions (DFI), which was created in the biennial budget act. This bill changes
the administrator of the Wisconsin consumer act from the division of banking to the
secretary of financial institutions. The 1995-97 biennial budget act also transferred,
from the commissioner of banking to the division of banking, responsibility for
establishing and maintaining computer and any other services necessary to support
the uniform commercial code statewide lien system. This bill transfers this
responsibility from the division of banking to DFI.
Economic development
Under current law, $100,000 is transferred in each fiscal year of the 1995-97
fiscal biennium from the development fund appropriation to an appropriation that
provides grants and loans for minority business projects. The appropriation for the
minority business projects grants and loans is repealed on July 1, 1997, and its

unencumbered balance lapses to the general fund. This bill provides instead for the
unencumbered balance in that appropriation account to transfer to the development
fund on July 1, 1997. The development fund is used to provide funding for the
technology development grant and loan program, the research grant and loan
program, the customized labor training grant and loan program, the major economic
development projects program, the employe ownership assistance loan program and
the Wisconsin trade project program.
Under current law, the department of development (DOD) may not award in
grants for early planning projects more than 10% of the moneys appropriated for
providing grants and loans for minority business projects. Two other appropriations
to DOD are also used for providing grants and loans for minority business projects.
This bill prohibits DOD from awarding in grants for early planning projects more
than 10% of the total of the moneys appropriated under all 3 of those appropriations.
Correctional system
Under current law, the department of health and social services (DHSS) must
provide a secured adolescent treatment unit at the Mendota Mental Health
Institute. Currently, DHSS may designate not more than 43 beds at the unit as
secured correctional facility beds. Current law defines a "secured correctional
facility" as a correctional institution operated or contracted for by DHSS for holding
in secure custody children who have been adjudged delinquent.
This bill eliminates the secured adolescent treatment unit and instead requires
DHSS to establish, operate and maintain a Mendota juvenile treatment center
(center) on the grounds of the Mendota Mental Health Institute. The bill eliminates
the limitation of 43 beds that DHSS may designate as secured correctional facility
beds and instead requires DHSS to operate the entire center as a secured
correctional facility. Further, the bill expressly provides that the center is not a
hospital, inpatient facility, state treatment facility or treatment facility and that
DHSS and, after July 1, 1996, the department of corrections, may transfer to the
center any child who has been placed in another secured correctional facility in the
same manner that children are transferred between other secured correctional
facilities, that is, on notice to the parent, guardian or legal custodian and committing
court. Finally, the bill requires the center to provide psychological and psychiatric
evaluations and treatment for children whose behavioral problems present a serious
problem to themselves or others in other secured correctional facilities and whose
mental health needs can be met at the center.
Education
Current law allows up to 7% of the enrollment of the Milwaukee Public Schools
(MPS) to attend, at no charge, any private school located in the city of Milwaukee
under certain circumstances. (In the 1996-97 school year, the limit is increased to
15%.) The state pays the parent or guardian of the pupil an amount equal to the
amount of per pupil aid that MPS receives from the state or an amount equal to the
private school's educational cost per pupil, whichever is less. The parent or guardian
must endorse the check for the use of the private school. The state reduces the MPS
school aid entitlement, for each pupil participating in the program, by the amount
of per pupil aid that MPS would otherwise receive.

Under this bill, if in any school year there are more spaces available in the
participating schools than the maximum number of pupils allowed to participate, the
department of education must prorate the number of spaces available at each
participating private school. Currently, there is no such provision.
Eminent domain
Under current law, an owner-occupant of property being acquired for a public
purpose by an entity vested with the power of eminent domain (a condemnor) may
waive his or her right to receive any relocation payments or services from the
condemnor if the property is not contiguous to any property which may be acquired
by the condemnor and is not part of a previously identified or proposed project where
it is reasonable to conclude that acquisition by the condemnor may occur in the
foreseeable future. In addition, current law prohibits a condemnor from proceeding
with any activity that may involve the displacement of persons, business concerns
or farm operations until the condemnor has filed a relocation payment plan and
relocation assistance service plan and has had both plans approved by the
department of industry, labor and human relations (beginning on July 1, 1996, the
department of development).
This bill provides that, unless the property being acquired is part of a program
or project receiving federal financial assistance, the owner-occupant may waive his
or her right to receive any relocation payments or services from the condemnor, may
agree to indemnify the condemnor for all relocation payments and services that are
associated with the acquisition of the property and may agree to prepare and file the
plans described above on behalf of the condemnor.
Employment
Under current law, the Wisconsin employment relations commission (WERC)
is required to assess and collect a filing fee from the party or parties requesting that
WERC initiate compulsory, final and binding arbitration with respect to a contract
dispute involving a collective bargaining unit consisting of members of a fire
department or a city or county law enforcement agency. This bill requires WERC to
assess and collect a filing fee from the party or parties requesting that WERC initiate
compulsory, final and binding arbitration with respect to a contract dispute involving
a collective bargaining unit consisting of other local government employes. In
addition, the bill provides that WERC is required to assess and collect a filing fee
from the party or parties requesting that WERC act as a mediator in any labor
dispute involving local government employes other than law enforcement or fire
fighting personnel.
Gambling
Under current law, the state levies a 2% tax on the total amount wagered on a
single dog race if the total amount wagered on all previous race days during the year
is not more than $25,000,000; a 2 2/3% tax if the amount is more than $25,000,000
but not more than $100,000,000; a 4 2/3% tax if the amount is more than
$100,000,000 but not more than $150,000,000; a 6 2/3% tax if the amount is more
than $150,000,000 but not more than $200,000,000; a 7 2/3% tax if the amount is
more than $200,000,000 but not more than $250,000,000; and an 8 2/3% tax if the
amount is more than $250,000,000. In addition, under current law, the state levies

a 1% tax on the total amount wagered on a single horse race if the total amount
wagered on all previous race days during the year is more than $50,000,000 but not
more than $100,000,000; a 2% tax if the amount is more than $100,000,000 but not
more than $150,000,000; and a 3% tax if the amount is more than $150,000,000. (At
present, there is no horse racing in this state.)
This bill specifies that the tax on the total amount wagered on dog races is for
live, on-track dog races conducted at the racetrack of a person licensed by the gaming
commission and that the tax on the total amount wagered on horse races is for live,
on-track horse races conducted at the racetrack of a person licensed by the gaming
commission. In addition, the bill specifies that the tax on simulcast racing conducted
at the racetrack of a person licensed by the gaming commission is the same as the
tax applicable to live, on-track dog races conducted at the racetrack.
Under current law, for horse races, a person licensed by the gaming commission
is required to use at least 8% of the total amount wagered on each race day for purses
for races held on that day. This bill specifies that the person is only required to use
at least 8% of the total amount wagered on each race day from live, on-track races
conducted at the licensee's racetrack for purses for races held on that day.
Health and social services
Under current law, the department of health and social services (renamed the
department of health and family services (DHFS) by the 1995-97 biennial budget
act) must implement a plan that is approved by DOA to assure that, by July 1, 1997,
there are revenues sufficient to pay for care provided to patients of the Mendota
Mental Health Institute and the Winnebago Mental Health Institute. DHFS must
report to DOA every 3 months, beginning on October 1, 1993, and ending on July 1,
1997, concerning the implementation of the plan.
This bill changes to July 1, 1999, the date by which DHFS must implement the
plan described above and extends the period during which DHFS must report to DOA
concerning implementation of the plan until July 1, 1999.
Local government
Under current law, any combination of cities, villages or towns may determine
the boundary lines between them under a cooperative plan that is approved by the
department of administration (DOA). Under this bill, authority to approve such a
plan is transferred from DOA to the department of commerce.
Under current law, a municipality (which includes a city, village, town, county,
lake district, metropolitan sewerage district, town sanitary district and municipal
water or power district) may issue revenue bonds to finance the purchase,
acquisition, construction, improvement, operation or management of a public utility.
A public utility is a revenue-producing facility or enterprise owned by a municipality
for a public purpose, and includes public works projects such as swimming pools,
tennis courts, golf links, municipal halls, courthouses, jails, schools, hospitals, waste
collection and disposal facilities and sewerage systems. Current law also allows a
municipality to issue new revenue bonds to provide funds for refunding certain
specified types of obligations that are issued for a purpose related to a public utility
or a public transportation system.

This bill allows revenue bonds to be issued to refund any municipal obligation,
including interest on any municipal obligation, that is issued for a purpose related
to a public utility or a public transportation system.
State government
Under current law, the board of directors of the University of Wisconsin
Hospitals and Clinics Authority (UWHCA) is required to negotiate and enter into a
lease agreement and an affiliation agreement with the board of regents of the
University of Wisconsin (UW) System for the management and operation of the UW
Hospitals and Clinics by UWHCA, beginning on June 29, 1996. The initial
agreements are subject to the approval of the governor and the joint committee on
finance (JCF). The initial period of the lease agreement and the affiliation
agreement, and of any extension or renewal of either agreement, may not be longer
than 5 years. Any modification, extension or renewal of the lease agreement or the
affiliation agreement is subject to the approval of JCF. Before UWHCA and the
board of regents may negotiate an extension or renewal of either the lease agreement
or the affiliation agreement, the legislative audit bureau (LAB) must perform a
performance evaluation audit of UWHCA.
This bill removes the 5-year limitation on the initial period of the lease
agreement and the affiliation agreement, and of any extensions or renewals of either
agreement. The bill allows UWHCA and the board of regents to modify the initial
period of the lease agreement and the affiliation agreement without the approval of
JCF if that period is for 5 years or less. The bill also removes the requirement that
LAB perform a performance evaluation audit before extension or renewal of either
agreement may be negotiated.
Under current law, UWHCA is required to negotiate and enter into a
contractual services agreement with the University of Wisconsin Hospitals and
Clinics Board (UWHCB) for employes of UWHCB to perform services at the
University of Wisconsin Hospitals and Clinics, beginning on June 29, 1996.
This bill provides that the contractual services agreement may authorize
UWHCA to perform specified ministerial duties for UWHCB with respect to
UWHCB employes, including duties related to supervision, disciplinary action and
the recommendation of new hires or layoffs. The agreement may also authorize
UWHCB to use the services of UWHCA with respect to UWHCB employes in
ministerial matters relating to collective bargaining, claims, complaints, or benefits
and records administration.
Currently, the department of administration (DOA) advises and assists state
agencies in the establishment and operation of records management programs and
audits those programs. DOA also operates a state records center, central microfilm
storage facility and a facility for the storage of records of state agencies in optical disk
or electronic format, and charges agencies for the use of the center and facilities.
Currently, DOA prescribes, by rule, procedures for the transfer of the records
of state agencies to optical disk or electronic format and qualitative standards for
optical disks and for copies of documents generated from optical disks used to store
those records. If a state agency follows those rules and certain statutory
requirements in transferring its records to optical disk or electronic format, any

microfilm reproduction or copy of a record of the agency stored in optical disk or
electronic format is considered an original record for evidentiary purposes.
This bill treats UWHCA as a state agency for the purposes described above.
Under current law, a local professional baseball park district may, under
certain conditions, enter into an agreement with DOA for DOA to provide building
construction services or work to the district. Construction undertaken by such a
district is generally subject to the ordinances and regulations of the municipality in
which the construction takes place.
This bill provides that, if DOA undertakes construction on behalf of a local
professional baseball park district of a building, structure or facility that is
constructed for the benefit or use of the district, the building, structure or facility is
exempt from all ordinances and regulations, except zoning ordinances and
regulations, of the municipality in which the construction takes place.
This bill changes the name of the Kickapoo valley governing board to the
Kickapoo reserve management board.
Other
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
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