AB618,1,10 1An Act to amend 20.927 (2) (a), 20.927 (2) (b), 20.9275 (2) (a) (intro.), 71.83 (1)
2(d) 2., 77.21 (1), 77.51 (4) (c) 6., 77.52 (2) (a) 1. and 77.54 (30) (d); and to create
320.927 (2m) and (2r) and 707.46 (3) of the statutes; relating to: restrictions on
4payment for abortions with public funds; changing the prohibition on use of
5federal, state or local funds for abortion-related activities by a pregnancy
6program, project or service; exempting the sales of flex-time time-share
7property from the sales tax and imposing the real estate transfer fee on all sales
8of time-share property; and the penalty provision for premature sales or
9transfers of business assets or assets used in farming that were received from
10family members.
Analysis by the Legislative Reference Bureau
Currently, with certain exceptions, abortions may not be authorized or paid for
with federal funds passing through the state treasury or with state, county, city,
village or town funds. The exceptions are for abortions that are directly and
medically necessary to save the life of or to prevent grave, long-lasting physical
damage to the woman, or in a case of sexual assault or incest that has been reported

to law enforcement authorities. These abortions may be paid for with public funds
if, before performing the abortion, the physician signs a certification attesting to the
direct medical necessity of the abortion or attesting to his or her belief that sexual
assault or incest occurred. The certification must be affixed to the claim form or
invoice that is submitted to any state agency or fiscal intermediary for payment.
This bill requires that the physician's certification also be affixed when
submitted by an individual health care provider to a health care coverage provider
for payment or for submittal to any agency or fiscal intermediary of the state for
payment. In addition, the bill requires that the health care coverage provider submit
a quarterly report to the public agency that contracted for the provider's services,
specifying the number of, reason for and total cost of any permitted abortions
provided under public funds in the previous quarter. The agency must forward a copy
of each report to the department of health and family services, which must annually
publish a summary of this information.
Under current law, as affected by 1997 Wisconsin Act 27 (the biennial budget
act), state agencies and local governmental units may not authorize payment of
federal, state or local funds that involve pregnancy programs, projects or services if
the program, project or service engages in abortion-related activities using the
federal, state or local funds or is funded from another source that requires
performance of the abortion-related activities. The prohibited activities are
providing abortions, promoting, encouraging or counseling in favor of abortions or
making abortion referrals. If these prohibitions are violated, the grant or other
funding of federal, state or local money is terminated, the grantee is required to
return any money received and the grantee may not receive the federal, state or local
moneys for 2 years. A "pregnancy program, project or service" is defined as a
program, project or service of an organization that provides services for pregnancy
prevention, family planning, pregnancy testing, pregnancy counseling, prenatal
care, pregnancy services and reproductive health care services that are related to
pregnancy.
This bill changes the prohibition on use of federal, state or local funds for
abortion-related activities to apply the prohibition to a pregnancy program, project
or service that uses state, local or federal funds and that engages in the prohibited
activities.
Time shares in property are sold on either a fixed-time basis (the time of
occupancy and the unit are specified at the time of the sale) or a flex-time basis (the
time of occupancy and the unit are subject to availability and to making a
reservation). Fixed-time transactions, like conveyances of real property, are exempt
from the sales tax. Flex-time transactions, like rentals of hotel and motel rooms, are
subject to the sales tax. This bill exempts flex-time transactions from the sales tax.
By requiring that all contracts for the sale of time shares must be recorded, the bill
also subjects all sales of time shares to the real estate transfer fee.
Generally, under current law, starting with taxable years that begin on January
1, 1999, 100% of the the gain realized on the sale or transfer of business assets or
assets used in farming to persons who are related to the seller or transferor by blood,
marriage or adoption within the 3rd degree of kinship is exempt from taxation. Also

under current law, if the person who purchases or receives such business assets or
assets used in farming sells or otherwise disposes of the assets within 2 years after
the person purchases or receives the assets, the person is liable for a penalty. The
penalty is equal to the amount of the capital gains exclusion received by the seller
or transferor when the person purchased or received the assets, prorated based on
the number of months the person held the assets. For example, a person who held
the assets for 18 months of the 2-year period during which the penalty applies would
be liable for 25% of the amount of the capital gains exclusion received by the seller
or transferor.
Under this bill, the penalty on the sale or disposal of such assets within 2 years
after the person purchases or receives the assets is equal to the amount of income tax
on the capital gains the original seller or transferor of the assets would have been
liable for if the exemption for sales or transfers to a person who is related to the seller
or transferor by blood, marriage or adoption within the 3rd degree of kinship did not
exist. The proration provision of the current law penalty provision is not changed
under the bill.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB618, s. 1 1Section 1. 20.927 (2) (a) of the statutes is amended to read:
AB618,4,22 20.927 (2) (a) This section does not apply to the performance by a physician of
3an abortion which is directly and medically necessary to save the life of the woman
4or in a case of sexual assault or incest, provided that prior thereto the physician signs
5a certification which so states, and provided that, in the case of sexual assault or
6incest the crime has been reported to the law enforcement authorities. The
7certification shall be affixed to the claim form or invoice when submitted to any
8agency or fiscal intermediary of the state for payment, or when submitted by an
9individual health care provider to a health care coverage provider for payment or for
10submittal to any agency or fiscal intermediary of the state for payment
, and shall
11specify and attest to the direct medical necessity of such abortion upon the best

1clinical judgment of the physician or attest to his or her belief that sexual assault or
2incest has occurred.
AB618, s. 2 3Section 2. 20.927 (2) (b) of the statutes is amended to read:
AB618,4,134 20.927 (2) (b) This section does not apply to the performance by a physician of
5an abortion if, due to a medical condition existing prior to the abortion, the physician
6determines that the abortion is directly and medically necessary to prevent grave,
7long-lasting physical health damage to the woman, provided that prior thereto the
8physician signs a certification which so states. The certification shall be affixed to
9the claim form or invoice when submitted to any agency or fiscal intermediary of the
10state for payment, or when submitted by an individual health care provider to a
11health care coverage provider for payment or for submittal to any agency or fiscal
12intermediary of the state for payment
, and shall specify and attest to the direct
13medical necessity of such abortion upon the best clinical judgment of the physician.
AB618, s. 3 14Section 3. 20.927 (2m) and (2r) of the statutes are created to read:
AB618,4,2115 20.927 (2m) Quarterly, following any annual quarter in which health care
16services have been provided under coverage that is affected by sub. (1), the health
17care coverage provider shall submit a written report to the agency which contracted
18for the services of the provider. The report shall specify the number of abortions, if
19any, provided in the previous quarter by the provider to individuals who have
20coverage for abortions, as permitted under sub. (2) (a) or (b), the reason for each
21abortion, and the total cost of each abortion.
AB618,4,25 22(2r) A copy of each report submitted under sub. (2m) shall be forwarded to the
23department of health and family services, which shall review the data for compliance
24with this section and annually publish a summary of the information obtained under
25this subsection.
AB618, s. 4
1Section 4. 20.9275 (2) (a) (intro.) of the statutes, as created by 1997 Wisconsin
2Act 27
, is amended to read:
AB618,5,53 20.9275 (2) (a) (intro.) The pregnancy program, project or service using the
4state, local or federal funds
does any of the following using the state, local or federal
5funds
:
AB618, s. 5 6Section 5. 71.83 (1) (d) 2. of the statutes, as created by 1997 Wisconsin Act 27,
7is amended to read:
AB618,5,168 71.83 (1) (d) 2. The penalty described under subd. 1. shall be the amount of the
9capital gains exclusion received by the transferor under s. 71.05 (6) (b) 25.
income tax
10that would have been imposed under s. 71.02 on the capital gains received by the
11transferor
in the transaction described in subd. 1. if the exemption under s. 71.05 (6)
12(b) 25. did not apply to the transaction
multiplied by a fraction, the denominator of
13which is 24 and the numerator of which is the difference between 24 and the number
14of months between the date on which the person who is liable for the penalty
15purchased or otherwise received the assets described in subd. 1. and the month in
16which the person sells or otherwise disposes of the assets.
AB618, s. 6 17Section 6. 77.21 (1) of the statutes is amended to read:
AB618,5,2218 77.21 (1) "Conveyance" includes deeds and other instruments for the passage
19of ownership interests in real estate, including contracts and assignments of a
20vendee's interest therein, including instruments that are evidence of a sale of
21time-share property, as defined in s. 707.02 (32),
and including leases for at least 99
22years but excluding leases for less than 99 years, easements and wills.
AB618, s. 7 23Section 7. 77.51 (4) (c) 6. of the statutes is amended to read:
AB618,5,2524 77.51 (4) (c) 6. Charges associated with time-share property that is taxable
25under s. 77.52 (2) (a) 1. or 2.
AB618, s. 8
1Section 8. 77.52 (2) (a) 1. of the statutes is amended to read:
AB618,6,212 77.52 (2) (a) 1. The furnishing of rooms or lodging to transients by hotelkeepers,
3motel operators and other persons furnishing accommodations that are available to
4the public, irrespective of whether membership is required for use of the
5accommodations, not including the furnishing of rooms or lodging through the sale
6of a time-share property, as defined in s. 707.02 (32), if the use of the rooms or lodging
7is not fixed at the time of sale as to the starting day or the lodging unit
. In this
8subdivision, "transient" means any person residing for a continuous period of less
9than one month in a hotel, motel or other furnished accommodations available to the
10public. In this subdivision, "hotel" or "motel" means a building or group of buildings
11in which the public may obtain accommodations for a consideration, including,
12without limitation, such establishments as inns, motels, tourist homes, tourist
13houses or courts, lodging houses, rooming houses, summer camps, apartment hotels,
14resort lodges and cabins and any other building or group of buildings in which
15accommodations are available to the public, except accommodations, including
16mobile homes as defined in s. 66.058 (1) (d), rented for a continuous period of more
17than one month and accommodations furnished by any hospitals, sanatoriums, or
18nursing homes, or by corporations or associations organized and operated
19exclusively for religious, charitable or educational purposes provided that no part of
20the net earnings of such corporations and associations inures to the benefit of any
21private shareholder or individual.
AB618, s. 9 22Section 9. 77.54 (30) (d) of the statutes is amended to read:
AB618,7,223 77.54 (30) (d) In this subsection "residential use" means use in a structure or
24portion of a structure which is a person's permanent residence, but does not include
25use in transient accommodations, as specified in s. 77.52 (2) (a) 1.,; time-share

1property, as defined in s. 707.02 (32);
motor homes,; or travel trailers or other
2recreational vehicles.
AB618, s. 10 3Section 10. 707.46 (3) of the statutes is created to read:
AB618,7,54 707.46 (3) Recording. A contract for the purchase of a time share and any other
5instrument that is evidence of a purchase of a time share is valid only if it is recorded.
AB618, s. 9343 6Section 9343. Initial applicability; revenue.
AB618,7,97 (1) The treatment of sections 77.21 (1), 77.51 (4) (c) 6., 77.52 (2) (a) 1., 77.54 (30)
8(d) and 707.46 (3) of the statutes first applies to sales that occur on the first day of
9the 2nd month beginning after publication.
AB618,7,1010 (End)
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