LRB-6079/1
ALL:all
2017 - 2018 LEGISLATURE
December 3, 2018 - Introduced by
Joint Committee on Finance. Referred to Joint
Committee on Finance.
SB887,3,4
1An Act to repeal 6.34 (1) (b), 6.87 (4) (a) 2., 16.84 (5) (d), 20.395 (2) (fq), 49.79
2(9) (d) 1., 165.055 (3), 227.20 (3) (c), 227.46 (3) (a), 227.46 (8), 230.08 (2) (sb),
3238.399 (3) (e), 601.83 (1) (b) and 601.85 (4);
to renumber 227.138 (1) (a) to (h);
4to renumber and amend 13.90 (3), 15.165 (2), 49.79 (9) (d) 2., 71.07 (7) (b),
571.365 (1), 108.04 (2) (a) 3. (intro.), 108.04 (2) (a) 3. a. to c., 108.04 (2) (b), 165.08,
6165.25 (6) (a), 227.135 (2), 227.135 (4), 227.137 (3) (e), 227.138 (1) (intro.),
7227.40 (3) (intro.), 227.40 (3) (a) and 343.50 (1) (c);
to consolidate, renumber
8and amend 6.34 (1) (intro.) and (a) and 6.87 (4) (a) (intro.) and 1.;
to amend
95.02 (6m) (f), 5.02 (21), 5.05 (13) (c), 5.05 (13) (d) 1., 5.60 (8) (am), 6.22 (2) (b),
106.22 (2) (e), 6.22 (4) (a), 6.22 (4) (c), 6.24 (2), 6.24 (4) (c), 6.24 (4) (d), 6.24 (4) (e),
116.25 (1) (b), 6.276 (1), 6.86 (1) (b), 6.865 (1), 6.87 (2), 6.87 (3) (d), 6.87 (4) (b) 1.,
126.88 (1), 6.97 (1), 7.08 (2) (d), 7.15 (1) (cm), 7.15 (1) (j), 8.12 (1), 8.12 (3), 10.02
13(3) (b) 3., 10.06 (2) (d), 10.06 (2) (g), 11.0101 (32), 13.56 (2), 13.90 (2), 13.91 (1)
14(c), 20.445 (1) (b), 20.455 (1) (gh), 20.455 (2) (gb), 20.455 (3) (g), 45.57, 49.175
1(2) (a), 49.175 (2) (c), 71.05 (6) (a) 14., 71.07 (7) (c), 71.36 (1), 73.03 (71), 77.51
2(13g) (intro.), 106.05 (2) (b) (intro.), 106.05 (3) (a), 106.13 (3m) (b) (intro.),
3106.18, 106.26 (3) (c) (intro.), 106.272 (1), 106.273 (3) (a) (intro.), 106.273 (3) (b),
4106.275 (1) (a), 108.04 (2) (a) (intro.), 108.04 (2) (a) 1., 108.04 (2) (a) 2., 108.04
5(2) (bm), 165.10, 165.25 (1), 165.25 (1m), 227.01 (13) (intro.), subchapter II
6(title) of chapter 227 [precedes 227.10], 227.11 (title), 227.13, 227.135 (3),
7227.137 (2), 227.137 (4), 227.138 (2), 227.185, 227.20 (3) (a), 227.24 (1) (e) 1d.,
8227.24 (1) (e) 1g., 227.40 (1), 227.40 (2) (intro.), 227.40 (2) (e), 227.40 (3) (b) and
9(c), 227.40 (4) (a), 227.40 (6), 227.46 (1) (h), 227.46 (2), 227.46 (2m), 227.47 (1),
10227.57 (11), 238.02 (1), 238.02 (2), 238.02 (3), 238.399 (3) (a), 281.665 (5) (d),
11343.50 (3) (b), 601.83 (1) (a), 601.83 (1) (g), 601.83 (1) (h), 801.50 (3) (b), 806.04
12(11), 809.13 and subchapter VIII (title) of chapter 893 [precedes 893.80];
to
13create 5.02 (12n), 5.02 (15m), 13.103, 13.124, 13.127, 13.365, 13.48 (24m),
1413.90 (3) (a) and (b), 15.07 (1) (b) 24., 15.165 (2) (d) and (f) to (i), 16.42 (5), 16.84
15(2m), 16.973 (15), 20.445 (1) (bz), 20.445 (1) (cg), 20.445 (1) (dg), 20.445 (1) (dr),
1620.445 (1) (e), 20.445 (1) (fg), 20.445 (1) (fm), 20.940, 35.93 (2) (b) 3. im., 49.45
17(2t), 49.45 (23b), 49.791, 71.05 (10) (dm), 71.07 (7) (b) 3., 71.21 (6), 71.365 (1) (b),
1871.365 (4m), 71.775 (3) (a) 4., 73.03 (71) (d), 77.51 (13gm), 84.54, 86.51, 108.04
19(2) (b) 1. (intro.), 108.04 (2) (b) 2. to 6., 108.04 (2) (bb), 108.04 (2) (bd), 165.07,
20227.01 (3m), 227.05, 227.10 (2g), 227.11 (3), 227.112, 227.135 (1) (g), 227.135 (1)
21(h), 227.135 (2) (a) 2., 227.135 (4) (a) 1. to 6., 227.135 (6), 227.137 (2m), 227.137
22(3) (e) 1. to 4., 227.137 (3m), 227.138 (1g), 227.18 (3m), 227.26 (2) (im), 227.47
23(3), 238.04 (15), 238.399 (3) (am), 301.03 (16), 343.165 (8), 343.50 (1) (c) 2.,
24343.50 (3) (c), 601.83 (1) (i), 803.09 (2m) and 893.825 of the statutes; and
to
25affect 2017 Wisconsin Act 59, section
9145 (4w);
relating to: legislative power
1and duties, state agency and authority composition and operations,
2administrative rule-making process, federal government waivers and
3approvals, unemployment insurance work search and registration
4requirements, and making an appropriation.
Analysis by the Legislative Reference Bureau
1.
Generally, under current law, an agency planning to promulgate an
administrative rule, including an emergency rule, must first prepare a statement of
the scope of the proposed rule (scope statement). A scope statement must be
submitted to the Department of Administration for a determination as to whether
the agency has the explicit authority to promulgate the rule as proposed in the scope
statement. DOA must then report the statement and its determination to the
governor who, in his or her discretion, may approve or reject the scope statement.
Also under current law, after a proposed administrative rule, including an
emergency rule, is in final draft form, the agency promulgating the proposed rule
must submit the proposed rule to the governor, who may approve or reject the
proposed rule. No agency may promulgate an administrative rule without the
written approval of the governor.
In Coyne v. Walker, 2016 WI 38, the Wisconsin Supreme Court held that
provisions requiring gubernatorial approval of scope statements and rules are
unconstitutional as applied to the superintendent of public instruction.
Consistent with the result in Coyne, this bill exempts rules promulgated by the
Department of Public Instruction from the requirements that a) a scope statement
be submitted to DOA for a determination of authority and that the scope statement
be approved by the governor and b) a proposed rule in final draft form be submitted
to the governor and that the governor approve the rule in writing.
2.
This bill requires a state agency to provide a statutory or administrative rule
citation for any statement or interpretation of law that the agency provides in its
informational materials.
3.
This bill allows the legislature to request an independent retrospective
economic impact analysis (EIA) for a rule.
Under current law, either cochairperson of the Joint Committee for Review of
Administrative Rules may request an independent EIA for a proposed rule after an
agency submits its EIA for that proposed rule. Such a request by the senate
cochairperson of JCRAR requires approval by the Committee on Senate
Organization, and a request by the assembly cochairperson requires approval by the
Committee on Assembly Organization. Current law requires the requester to enter
into a contract to perform the independent EIA, and requires the analysis to be
completed within 60 days after entering into the contract. Under current law, an
independent EIA is paid for by the agency if the independent EIA's cost estimate for
the proposed rule varies by 15 percent or more from the agency's EIA, and is paid for
by the legislature if the independent EIA's cost estimate for the proposed rule varies
by less than 15 percent from the agency's EIA.
Also under current law, either cochairperson of JCRAR may request an agency
to conduct a retrospective EIA for existing rules, which must contain certain
information and analysis about the economic impact of the agency's existing rules.
This bill allows either cochairperson of JCRAR to request an independent
retrospective EIA for a rule within 90 days after an agency submits a retrospective
EIA for the rule. The bill specifies that a request for an independent retrospective
EIA for a rule follows the same procedure and payment method as a request for an
independent EIA for a proposed rule.
4.
This bill allows pass-through entities to elect to be taxed at the entity level for
purposes of the state's income and franchise taxes.
Under current law, pass-through entities, such as tax-option corporations and
partnerships, are generally not subject to the income or franchise tax at the entity
level. Rather, any item of income, loss, or deduction flows through to their
shareholders, partners, or members, who are then subject to tax.
The bill allows tax-option corporations and partnerships, including limited
liability companies and other entities that are treated as partnerships under federal
tax law, to elect to be taxed at the entity level for purposes of the income and franchise
taxes. An entity that makes the election is taxed at a rate of 7.9 percent on its net
income that is reportable to Wisconsin, and the situs of income is determined as if
the election was not made. The entity may not claim losses and tax credits except
for the credit for taxes paid to other states. The bill also provides that the adjusted
basis of the entity's partners, shareholders, or members is determined as if the
election was not made. If the entity fails to pay the taxes due, the Department of
Revenue may collect the amount from the entity's partners, shareholders, or
members. Persons who hold more than 50 percent ownership of the pass-through
entity must consent to the election and must consent to any revocation of the election.
The bill allows the election to be made for taxable years beginning in 2018 for
tax-option corporations and 2019 for other entities.
5.
This bill requires the Department of Veterans Affairs to submit to the Joint
Committee on Finance a notification of any transfers of funds from the
unencumbered balance of certain appropriations for veterans homes to the veterans
trust fund or the veterans mortgage loan repayment fund. Current law allows those
transfers to be made without any notification.
6.
Under current law, no later than September 15 of each even-numbered year,
each executive state agency must file with DOA the agency's budget request for the
succeeding biennium. This bill requires each agency to include with its biennial
budget request a report that lists each fee the agency is authorized to charge. The
report must also include the following:
1. The amount of each fee or the method of calculating the fee if there is no fixed
amount.
2. An identification of the agency's statutory authority to charge each fee.
3. A statement whether or not the agency currently charges the fee.
4. A description of whether and how each fee has changed over time.
5. Any recommendation the agency has concerning each fee.
The bill defines “fee” as any amount of money other than a tax that an agency
charges a person other than a governmental entity.
7.
Under current law, the Department of Transportation may make transfers of
state and federal funding between highway programs. This bill eliminates this
authority.
8.
This bill increases the size of the Group Insurance Board by four members. The
new members are appointed, respectively, by the speaker of the assembly, the
assembly minority leader, the senate majority leader, and the senate minority leader.
The bill also provides that the six members appointed by the governor for two-year
terms are subject to senate confirmation.
9.
This bill requires the Building Commission to establish an amortization
schedule for each short-term, general obligation debt authorized by the commission.
The amortization schedule must provide that a portion of the principal amount of the
debt is retired annually over the life of the improvement or asset to which the debt
is related. An amortization schedule established as required under the bill may not
be modified except as authorized by JCF under passive review.
10.
Under current law, the Department of Children and Families is directed to
allocate in each fiscal year specific amounts of money, including federal moneys
received under the Temporary Assistance for Needy Families (TANF) block grant
program, for various public assistance programs (commonly known as the TANF
schedule). Under current law, DCF may reallocate funds that are allocated for one
purpose in the TANF schedule for any other purpose in the TANF schedule if the
secretary of administration approves the reallocation. Also under current law, if the
TANF moneys received from the federal government are less than the amounts
appropriated for the purposes under the TANF schedule, DCF is required to create
a plan for reducing the amounts of moneys allocated under the TANF schedule and
to carry it out if the secretary of administration approves the plan. This bill replaces
the authority of the secretary to approve a reallocation or a plan to reduce the moneys
allocated under the TANF schedule with passive review by JCF.
11.
This bill separates a single appropriation to the Department of Workforce
Development for various workforce training programs, commonly referred to as the
Fast Forward program, into a separate appropriation for each program. The bill
appropriates the following amounts for each of the following programs for fiscal year
2018-19:
1. Career and technical education incentive grants — $3,500,000
2. Technical education equipment grants — $500,000
3. Teacher development program grants — $0
4. Apprenticeship programs — $225,000
5. Local youth apprenticeship grants — $2,233,700
6. Employment transit assistance grants — $464,800
7. Youth summer jobs programs in 1st class cities (currently only the city of
Milwaukee) — $422,400
Under the bill, DWD may request that JCF transfer moneys from the Fast
Forward appropriation account to the appropriation accounts for the teacher
development program grants and local youth apprenticeship grants to fund those
grant programs.
The bill also converts the Fast Forward appropriation from a continuing
appropriation to an annual appropriation.
