Rule-Making Notices (Hearing Notices)

Example: Combined Group EFG consists of Member E, Member F, and Member G. E has the following loss carryforwards:

Year     Sharable   Non-sharable
Incurred   Carryforward   Carryforward

2008   ——     ($10,000)

2009   ($6,000)   ($2,000)

In 2010, E's share of combined unitary income plus its separate entity items equal $14,000. After using its carryforwards to offset this income, E has $4,000 of remaining net business loss carryforward (= ($10,000) + ($6,000) + ($2,000) + $14,000). Of this amount, a portion is a sharable carryforward that may be applied against F and G's shares of combined unitary income in the manner described in par. (d). Since loss carryforwards are applied in the order incurred, the $10,000 carryforward from 2008 is used in its entirety, and $4,000 of the 2009 carryforward is used. The portion of E's remaining carryforward from 2009 that is sharable is $3,000 (= $4,000 x [$6,000 / $8,000]) and the portion that is non-sharable is $1,000 (= $4,000 x [$2,000 / $8,000]).

In 2012, E has the following loss carryforwards:

Year     Sharable   Non-sharable
Incurred   Carryforward   Carryforward

2009   ($3,000)   ($1,000)

2010   ——   ——

2011   ($4,000)   ($6,000)

In addition, E has a pre-2009 net business loss carryforward of $3,000. E's share of combined unitary income plus its separate entity items for 2012 equal $16,000. After using its carryforwards to offset this income, E has $1,000 of remaining net business loss carryforward (= ($3,000) + ($3,000) + ($1,000) + ($4,000) + ($6,000) + $16,000). Since the loss carryforwards are first applied to the net business loss carryforwards incurred in 2009 and after, the $4,000 carryforward from 2009 and the $10,000 carryforward from 2011 are used in their entirety. The remaining $2,000 of loss carryforwards are applied to the pre-2009 net business loss carryforward. The remaining pre-2009 net business loss carryforward is $1,000.

SECTION 6. Tax 2.61 (9) (d) (intro.) is amended to read:

Tax 2.61 (9) (d) (intro.) Method of sharing. The amount of net business loss carryforward under par. (c) 2. eligible for sharing shall be computed and assigned as follows:

SECTION 7. Tax 2.61 (9) (dm) is created to read:

Tax 2.61 (9) (dm) Pre-2009 net business loss carryforwards. 1. For a combined group member's first taxable year beginning after December 31, 2011, the member may, after using the pre-2009 net business loss carryforward to offset its own income for the taxable year, and after using sharable losses to offset its own income for the taxable year, use 5% of the pre-2009 net business loss carryforward to offset the income of all other members of the combined group for the taxable year and for each of the 19 subsequent taxable years.

Example: Member A of Wisconsin Combined Group ABC has pre-2009 net business loss carryforwards of $100 million as of December 31, 2008. A's share of the combined group's income is $2 million in 2009, $3 million in 2010, and $5 million in 2011. A's one-time calculation of the annual 5% sharable amount is $4.5 million, computed as follows: [$100 million pre-2009 net business loss carryforward less the taxable income offset by the net business loss carryforward ($2 million in 2009, $3 million in 2010, and $5 million in 2011) multiplied by 5 percent].

In 2012 Member A's share of the combined group's Wisconsin income is $1 million. Member A first applies its pre-2009 net business loss carry-forward against its $1 million share of the combined group's Wisconsin income. The remaining members of the group may use the $4.5 million sharable loss to offset the remaining group income on a proportionate basis. Assuming the combined group has enough income in 2012 to fully use the entire $4.5 million in pre-2009 net business loss carryforward, the pre-2009 net business loss carryforward available in 2013 is $84.5 million ($90 million total sharable loss less $1 million of Member A's income offset by the net business loss carry-forward, less $4.5 million sharable loss utilized by the corporation in 2012). If Member A's share of the combined group's income is $0 for all the remaining years of the pre-2009 carry-forward, and the remaining members of the combined group were eligible to share the full $4.5 million net business loss carry-forward each year, the sharable pre-2009 net business loss available in 2031 will be $3.5 million ($4.5 million annual sharable loss computed in 2012 less $1 million loss used by Member A in 2012).

2. Except as provided in par. (g), relating to insurance companies, the sharable pre-2009 net business loss carryforward under subd. 1. shall be assigned to each combined group member in proportion to its share of combined unitary income as computed in subs. (6) to (8), net of any losses from separate entity items or loss carryforwards already applied. An amount may not be assigned to a combined group member whose share of combined unitary income is zero or less. Any remaining sharable amount becomes part of the combined group's pre-2009 net business loss carryforward that may be shared by all combined group members in subsequent years.

Example: Member D of Combined Group DEF has a pre-2009 net business loss carry-forward of $2 million as of January 1, 2012. The 5% sharable amount allowed to members E and F in each year for taxable years 2012 through 2031 is $100,000 ($2 million net business loss carryforward multiplied by 5%). Member E's proportional share of the $100,000 sharable net business loss in 2012 is $30,000. After using all other allowable losses, Member E has $20,000 in income remaining to offset against its share of the pre-2009 net business loss carryforward. The remaining $10,000 net business loss carryforward not used by Member E in 2012 becomes part of the combined group's pre-2009 net business loss carryforward that may be shared by all combined group members in 2013 and is in addition to the 5% net business loss carryforward previously computed. As a result, the net business loss carryforward available in 2013 is $110,000 ($100,000 combined group yearly sharable loss plus Member E's $10,000 proportional share of the $100,000 loss in 2012 that was not fully utilized by Member E in 2012).

3. Notwithstanding the provisions of ss. 71.26 (4) (a) and 71.45 (4) (a), Stats., under ss. 71.26 (4) (b) and 71.45 (4) (b), Stats., any unused pre-2009 net business loss carryforward under subd. 1. may be offset against the income of the members of the combined group for the 20 taxable years that begin after December 31, 2011.

Example: As of December 31, 2008, Member G of Combined Group GHI has a loss carryforward of $30,000 that is in the 14th year of the 15 year carryforward period under s. 71.26 (4) (a), Stats. Member G does not have any income to offset the $30,000 loss carryforward in its taxable years beginning in 2009, 2010, or 2011. For taxable years beginning on or after January 1, 2012, Member G is allowed to use the $30,000 pre-2009 net business loss carryforward to offset any of its own income first, then offset its proportional share of Combined Group GHI's income, and finally, any remaining loss may be shared proportionately among the other members of Combined Group GHI. Under s. 71.26 (4) (b), Stats., Member G's pre-2009 net business loss carryforward of $30,000 begins a new carryforward period of 20 years from its taxable year beginning in 2012.

ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Section Tax 2.60 - Definitions relating to combined reporting and Section Tax 2.61 - Combined reporting
Subject
Treatment of pre-2009 net business loss carryforwards under combined reporting
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 a statutory change.
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 fiscal effect of allowing commonly controlled groups to share losses generated before January 1, 2009, was included in the fiscal effect of 2011 Wisconsin Act 32. The rule itself does not create any further economic or fiscal impact or implementation and compliance costs beyond the statutes it interprets, except that, by providing clarifications and examples, may reduce the costs that businesses and individuals would otherwise incur to comply with the statutes. 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 2 will be incomplete in that it will not reflect current law.
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)
Illinois has its own unique provisions concerning the treatment of net business loss carryforwards, which differ from Wisconsin's provisions substantively enough to prohibit consideration of the Illinois approach.

Assumptions used in arriving at fiscal estimate

The proposed rule prescribes the method that members of the same combined group must use to share net business losses with other members of the same commonly controlled group for net business losses incurred prior to January 1, 2009, and not fully used before January 1, 2012. It also provides clarity regarding the 15 year and 20 year net business loss carryforwards for purposes of ss. 71.26 (4) (a) and (b) and 71.45 (4) (a) and (b), Stats.

The fiscal effect of allowing commonly controlled groups to share losses generated before January 1, 2009 was included in the fiscal effect of 2011 Act 32. The rule only implements the provisions of Act 32 as it relates to the sharing of losses, it does not modify them. Therefore, the rule has no fiscal effect.

Agency Contact Person

Please contact Dale Kleven at [phone] or [e-mail], if you have any questions regarding this proposed rule.

Notice of Hearing

Safety and Professional Services

Safety, Buildings, and Environment,
General Part I Chs. SPS 301-319

rulemaking_notices CR 12-007 CR 12-007

NOTICE IS HEREBY GIVEN that pursuant to sections 101.02 (1) and 227.10 (1), Stats., the Department of Safety and Professional Services will hold a public hearing on proposed rules under Chapter SPS 305, relating to thermal insulator credentials.

Hearing Information

The public hearing will be held as follows:

Date:   Monday, February 13, 2012

Time:   10:00 A.M.

Location:   Conference Room 121A
  125 South Webster St.
  Madison, WI 53703

This hearing is held in an accessible facility. If you have special needs or circumstances that may make communication or accessibility difficult at the hearing, please call [phone] or [phone] (TTY) at least 10 days before the hearing date. Accommodations such as interpreters, English translators, or materials in audio tape format will, to the fullest extent possible, be made available upon a request from a person with a disability.

Appearances at the Hearing and Submittal of Written Comments

Interested persons are invited to appear at the hearing and present comments on the proposed rules. Persons making oral presentations are requested to submit their comments in writing. Persons submitting comments will not receive individual responses. The hearing record on this proposed rulemaking will remain open until Monday, February 20, 2012, to permit submittal of written comments from persons who are unable to attend the hearing or who wish to supplement testimony offered at the hearing. Written comments should be submitted to James Quast, at the Department of Safety and Professional Services, P.O. Box 2689, Madison, WI 53701-2689, or Email at [e-mail].

The small business regulatory coordinator for the Department of Safety and Professional Services is Bill Wendle, who may be contacted at telephone [phone], or Email at [e-mail].

Copies of Proposed Rules

The proposed rules and an analysis of the proposed rules are available on the Internet at the Safety and Buildings Division Web site at http://dsps.wi.gov/sb/SB-HomePage.html. Paper copies may be obtained without cost from Norma McReynolds, at the Department of Safety and Professional Services, Board Services Division, P.O. Box 2689, Madison, WI 53701-2689, or Email [e-mail], or at telephone [phone] or TDD Relay dial 711 in Wisconsin or [phone]. Copies will also be available at the public hearing.

Statutes interpreted

Sections 101.02 (1) and 227.10 (1), Stats.

Statutory authority

Sections 101.02 (1) and 227.10 (1), Stats.

Related statute or rule

None.

Explanation of agency authority

Under 2009 Wisconsin Act 16, s. 101.136, Stats., on and after July 1, 2011, only individuals licensed as insulation mechanics or working under the supervision of licensed insulation mechanics may install or maintain thermal system insulation. Thermal insulation was statutorily defined as a product that is used in a heating, ventilating, cooling, plumbing or refrigeration system to insulate any hot or cold surface, including a pipe, duct, valve, boiler, flue, or tank, or equipment on or in a building. 2011 Wisconsin Act 32 repealed s. 101.136, Stats.

Summary of proposed rules

The proposed rules repeal the credentialing procedures established for thermal system insulators under s. 101.136, Stats., as mandated under 2009 Wisconsin Act 16.

Summary of and preliminary comparison with, existing or proposed federal regulations

An internet search on U.S. federal regulations and U.S. federal register yielded no results regarding the licensing of thermal insulators.

Comparison with rules in adjacent states

An Internet-based search of thermal insulation mechanic licenses in the states of Illinois, Iowa, Michigan and Minnesota found that none of the states have specific rules or programs regarding these types of licenses.

Summary of the factual data and analytical methodologies

The proposed rules were developed because of 2011 Wisconsin Act 32 which repealed s. 101.136, Stats.

Analysis and supporting documents used to determine effect on small businesses or in preparation of economic impact report

The proposed rule action follows the direction provided by 2011 Wisconsin Act 32.

Initial Regulatory Flexibility Analysis

1.   Types of small businesses that will be affected by the rules.

  2011 Wisconsin Act 32 repealed the statutory mandate for thermal insulators previously enacted by 2009 Wisconsin Act 16, s. 101.136, Stats. Thermal insulation was statutorily defined as a product that is used in a heating, ventilating, cooling, plumbing or refrigeration system to insulate any hot or cold surface, including a pipe, duct valve, boiler flue, or tank or equipment on or in a building. The repeal of the credential rules will most likely affect HVAC contractors, plumbing contractors, and mechanical refrigeration contractors.

2.   Reporting, bookkeeping and other procedures required for compliance with the rules.

  No new or additional reporting, bookkeeping and other procedures are required for compliance with the rules.

3.   Types of professional skills necessary for compliance with the rules.

  No new or additional types of professional skills are necessary for compliance with the rules.

The small business regulatory coordinator for the Department of Safety and Professional Services is Bill Wendle, who may be contacted at telephone [phone], or Email at [e-mail].

Environmental Analysis

Notice is hereby given that the department has considered the environmental impact of the proposed rules. In accordance with Chapter SPS 301, the proposed rules are a Type III action. A Type III action normally does not have the potential to cause significant environmental effects and normally does not involve unresolved conflicts in the use of available resources. The department has reviewed these rules and finds no reason to believe that any unusual conditions exist. At this time, the department has issued this notice to serve as a finding of no significant impact.

Text of Rule

SECTION 1. SPS 305.02 Table 305.02 lines 50r. to 50t. are repealed.

SECTION 2. SPS 305.06 Table 305.06 lines 45r. to 45t. are repealed.

SECTION 3. SPS 305.74 and 305.741 to 305.743 are repealed.

Agency Contact

James Quast, Program Manager, [e-mail], [phone]

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 SPS 305, Licenses, Certifications and Registrations
Subject
Thermal System Insulators
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
GPR FED X 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
Section 101.136, Stats., as created by 2009 Wisconsin Act 16, mandates as of July 1, 2011 only individuals licensed as insulation mechanics or working under the direct supervision of licensed insulation mechanics may install or maintain thermal system insulation. The department promulgated rules under Chapter SPS 305 effective February 1, 2011 that implemented the licensing mandates of 2009 Wisconsin Act 16. Subsequently, 2011 Wisconsin Act 32, has repealed s. 101.136, Stats., and therein eliminated the licensing mandates for thermal system insulators.
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)
It was estimated that the credential rules implemented pursuant to 2009 Wisconsin Act 16 regarding thermal insulators would most likely affect HVAC contractors, plumbing contractors, and mechanical refrigeration contractors. Fees for the various credentials ranged from $15 for apprentices and helpers to $250 for mechanics. In light of the Act 32, the thermal insulator credentials were not implemented and the associated fees not collected.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The proposed repeal of the credential rules for thermal insulators will clarify and allow individuals to continue to install and maintain thermal system insulation without the necessity of acquiring a specific credential. An alternative of leaving the rules in place and requiring the credentials under the broad authority of Chapter 101, Stats., would not reflect the latest direction provided by 2011 Wisconsin Act 32.
Long Range Implications of Implementing the Rule
No long range implications are anticipated.
Compare With Approaches Being Used by Federal Government
An internet search on U.S. federal regulations and U.S. federal register yielded no results regarding the licensing of thermal insulators.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
An Internet-based search of thermal insulation mechanic licenses in the states of Illinois, Iowa, Michigan and Minnesota found that none of the states have specific rules or programs regarding these types of licenses.
Name and Phone Number of Contact Person
James Quast, program manager, [phone]

Notice of Hearing

Safety and Professional Services
Medical Examining Board

rulemaking_notices CR 12-005 CR 12-005

NOTICE IS HEREBY GIVEN That pursuant to sections 15.08 (5) (b), 227.11 (2), 448.05 (5), 448.20 (3) (a), 448.40 (2) (f), Stats., and interpreting sections 448.21 (2) and (3), Stats., the Medical Examining Board will hold a public hearing at the time and place indicated below to consider an order to repeal section Med 8.10 (2); to renumber section Med 8.02 (1); to renumber and amend sections Med 8.01 and Med 8.10 (3) and (4); to amend sections Med 8.05 (2) (title), Med 8.05 (2) (b), Med 8.05 (2) (b) (7), Med 8.05 (2) (c), Med 8.07 (1), Med 8.07 (2) (a) and (e), Med 8.08 (title), Med 8.08 (1), Med 8.08 (3) (b), Med 8.10 (title), Med 8.10 (1); to repeal and recreate sections Med 8.08 (2) and Med 8.08 (3) (a) and to create sections Med 8.01 (2), Med 8.02 (1), Med 8.02 (4m), Med 8.02 (7), Med 8.05(2) (e), Med 8.07 (1) (a) and (b), and Med 8.08 (1) (a), (b), (c) and (d), and Med 8.08 (3) (c) and (d), relating to definitions, practice prescribing limitations, employment requirements and supervising physician responsibilities.

Hearing Information

Date:   Wednesday, February 15, 2012

Time:   9:00 A.M.

Location:   1400 East Washington Avenue (enter at 55       North Dickinson Street)
  Room 121
  Madison, WI 53703

Appearances at the Hearing

Interested persons are invited to present information at the hearing. You may make a presentation in person or submit a brief statement regarding facts, opinions and arguments, or both. You may also submit a brief statement of facts, opinions and arguments in writing without a personal appearance by mail addressed to Shawn Leatherwood, Department of Safety and Professional Services, Division of Board Services, P.O. Box 8935, Madison, WI 53708. Written comments will be accepted until February 15, 2012.

Place Where Comments are to be Submitted and Deadline For Submission

Comments may be submitted to Shawn Leatherwood, Paralegal, Department of Safety and Professional Services, 1400 East Washington Avenue, P.O. Box 8935, Madison, Wisconsin 53708-8935, or by email to [e-mail]. Comments must be received on or before February 15, 2012, to be included in the record of rule-making proceedings.

Copies of Proposed Rule, Fiscal Estimate, and Economic Impact Analysis