CR_13-045 Hearing to consider rule creating Chapter DWD 801, relating to workforce training grants under the Wisconsin Fast Forward program.

Text of Proposed Rule

SECTION 1. Tax 6.02 is amended to read:

Tax 6.02 Returns for public utilities. Forms that are used in the administration of the various taxes levied according to ch. 76 , Stats., may be obtained from the Wisconsin Department of Revenue, Bureau of Utility and Special Taxes Division of State and Local Finance , P.O. Box 8933 8971 , Madison, WI 53708 -8971 .

SECTION 2. Tax 6.40 (2) (a) and (b) are amended to read:

Tax 6.40 (2) (a) Requests for approval by public utilities subject to taxation under s. 76.13 , Stats., for each waste treatment facility shall be made by completing the form entitled " Application for Exemption of Report of Exempted Waste Treatment Facility-Utility." All actual costs of purchase or construction of the facility must be reflected on this form. The completed form is due January 15 of each year and is to be filed annually except in years subsequent to purchase or construction where no capital changes have occurred to the waste treatment facility, in which case a summary sheet may be submitted for these facilities. For good cause shown upon application by the applicant, the department may grant an extension of time not exceeding 120 days in which to file the application form.

(b) The completed form " Application for Exemption of Report of Exempted Waste Treatment Facility-Utility" should be sent to the Bureau of Utility and Special Taxes Division of State and Local Finance .

Note: The address for mailing the application form is Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, Division of State and Local Finance, PO Box 8971, Madison WI 53708-8971.

SECTION 3. Tax 6.50 (4) (b) is amended to read:

Tax 6.50 (4) (b) The department shall make adequate and reasonable allowances for loss of value due to all causes including physical depreciation, functional and economic obsolescence, regulatory required write-offs and utility plant acquisition adjustments. The department shall also make required allowances for property which is not taxable under ch. 76, Stats., which includes but is not limited to, future use property, except when included in the rate base, approved waste treatment facilities, licensed motor vehicles, nonoperating property, property allocable outside the state and property leased to others. The cost indicator for regulated public utilities shall recognize that an asset's value generally is limited by its value for ratemaking purposes. The cost indicator shall include construction work in-progress regardless of the treatment for ratemaking purposes.

SECTION 4. Tax 13.05 (1) (intro.) is renumbered Tax 13.05 (1) and amended to read:

Tax 13.05 (1) Net proceeds tax . Fifteen days after collection of the tax, the department of administration, upon certification of the department of revenue, shall transfer the amount collected as follows: first dollar payment and the taxes collected to the impact fund.

SECTION 5. Tax 13.05 (1) (b) is repealed.

SECTION 6. Tax 15.03 (2) (intro.) is renumbered Tax 15.03 (2) and amended to read:

Tax 15.03 (2) Conveyances by means of a sheriff's sale : where the grantee is a third party with no prior interest in the deed or mortgage.

SECTION 7. Tax 15.03 (2) (a) to (c) are repealed.

SECTION 8. Tax 15.05 (5) is repealed.

SECTION 9. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.) , Stats.

ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chapters Tax 6, 13, and 15 — Public utility taxation; investment and local impact fund; and real estate transfer fee
Subject
Public utility taxation, investment and local impact fund, and real estate transfer fee
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 current law and department policy.
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 proposed rule has no fiscal effect on municipalities, counties, or the Department of Revenue. 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 municipalities and counties. If the rule is not implemented, Chapters Tax 6, 13, and 15 will be incomplete in that they will not reflect current law or department policy.
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 )
N/A

FISCAL ESTIMATE FORM				2013 Session
	LRB #
X ORIGINAL ⍽ UPDATED	INTRODUCTION #
⍽ CORRECTED ⍽ SUPPLEMENTAL	Admin rule #		Tax 6: Public Utility Taxation Tax 13: Investment & Local Impact Fund Tax 15: Real Estate Transfer Fee
Subject Proposed order of the Department of Revenue relating to public utility taxation, investment and local impact fund, and real estate transfer fee
Fiscal Effect

State: X No State Fiscal Effect   Check columns below only if bill makes a direct appropriation or   affects a sum sufficient appropriation ⍽ Increase Existing Appropriation ⍽ Increase Existing Revenues ⍽ Decrease Existing Appropriation   ⍽ Decrease Existing Revenues ⍽ Create New Appropriation			⍽ Increase Costs — May be Possible to Absorb Within Agency's Budget ⍽ Yes ⍽ No ⍽ Decrease Costs
Local: X No Local Government Costs
1. ⍽ Increase Costs	3. ⍽ Increase Revenues		5. Types of Local Governmental Units Affected:
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ Towns ⍽ Villages ⍽ Cities
2. ⍽ Decrease Costs	4. ⍽ Decrease Revenues		⍽ Counties ⍽ Others
⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory		⍽ School Districts ⍽ WTCS Districts
Fund Sources Affected ⍽ GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S		Affected Ch. 20 Appropriations

Assumptions Used in Arriving at Fiscal Estimate

Summary

The proposal makes a number of updates and technical corrections to certain DOR administrative rules. These changes have no fiscal effect on municipalities, counties, or the DOR.

Detail of provisions

Section 1 of the proposal updates the address from which utilities can obtain the forms they are required to use in their annual filings with the Department of Revenue (DOR).

Section 2 of the proposal changes the name of a report form to the current name and updates the DOR address from which the required from can be obtained.

Section 3 of the proposal is not consistent with current practices under which certain utilities are valued on a unit basis. The proposal would make the rule consistent with current DOR practices.

Sections 4 and 5 of the proposal update the rules to reflect the repeal (in 1997 Wisconsin Act 27 ) of the Badger Fund. The Badger Fund was a segregated fund into which 40% of the collections from the mining net proceeds tax (after certain allocations) were deposited.

Sections 6 to 8 of the proposal update the real estate transfer fee rules to reflect how sheriff's sales are handled under current law. Under current law, a conveyance by or in lieu of foreclosure to a person holding a mortgage or to a seller under a land contract is specifically exempt from the transfer fee. However, a conveyance by or in lieu of foreclosure to someone with no prior interest in the mortgage or deed is not exempt.

Notice of Hearing

Workforce Development

Employment and Training, Chs. DWD 805-830

CR 13-045

NOTICE IS HEREBY GIVEN that pursuant to ss. 103.005 (1) and 106.27 (2g) , Stats., the Department of Workforce Development proposes to hold a public hearing to consider the creation of Chapter DWD 801 , relating to workforce training grants under the Wisconsin Fast Forward program.

Hearing Information

Date:   Monday, July 15, 2013
Time:   10:00 a.m.
Location:   G.E.F. 1 Building, B 103
  201 E. Washington Avenue
  Madison, WI

Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.

Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call [phone] at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.

Written Comments and Deadline for Submission

Written comments may be submitted to Howard Bernstein, Office of Legal Counsel, Dept. of Workforce Development, P.O. Box 7946, Madison, WI 53707-7946 or by email to [e-mail] . The deadline for submission is July 17, 2013. Written comments will be given the same consideration as testimony presented at the hearing.

Availability of Rules

The proposed rules are available at the website http://adminrules.wisconsin.gov . This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper copy of the rule by contacting Howard Bernstein at the addresses given above or by telephone at [phone].

Analysis Prepared by the Department of Workforce Development

Statutory authority

Sections 103.005 (1) and 106.27 (2g) , Stats.

Statute interpreted

Section 106.27 , Stats.

Explanation of agency authority

2013 Wisconsin Act 9 creates a program in the Department of Workforce Development (DWD) for the development and implementation of workforce training grants to be used for the training of unemployed and underemployed workers in this state or for the training of incumbent employees of businesses in this state.

Act 9 mandates that grantees report to DWD regarding how grant money was used and the outcomes achieved, and requires DWD to promulgate rules prescribing the information to be contained in these reports. It also requires DWD to create grant application forms, procedures, and criteria, and permits DWD to audit and inspect the records of grantees.

Summary of the proposed rule

This rule establishes the general criteria, procedures, requirements and conditions for the award of Wisconsin Fast Forward workforce training grants. It allows for grant applications from any public or private organization, including an employer or an economic development agency or training provider that is working with an employer.

The rule provides for the solicitation of applications for grants in the form of Grant Program Announcements (GPAs). Each grant applicant will be asked to provide information about itself and a description of the its proposed training program, including the proposed program budget and the proposed matching funds to be provided by the applicant.

The proposed rule provides that grant applications shall receive a preliminary review to ensure that they meet the basic requirements of the GPA. Applications which satisfy this review shall then be evaluated and ranked in relation to a series of factors relating to the capability of the applicant, the specifics of the proposal, and the potential economic and workforce capacity impacts of the proposal. The Department may also consider factors such as underserved populations and geographic areas.

The rule establishes an overall procedure for awarding grants and guidelines for grant administration, the use of grant funds and the provision of matching funds by grantees. Each grantee will be required to report on the use and effect of the grant funds in terms of information on the number of trainees, the trainees that have completed the program, and whether trainees have obtained new employment with increased wages or increased hours of work.

Summary of analytical methodology

The rules of other public grant programs were reviewed as part of the process for developing this proposed rule. No other data or analysis was needed.

Comparison to federal law

The federal Workforce Investment Act of 1998 provides funding for employment and training programs to the state with the guidance of the State Council for Workforce Investment. Grant allocations go to 11 regional workforce development boards, which fund and supervise local programs. P rograms for employment placement and retention, job training, and education-related training are delivered through the Wisconsin Job Centers.

Comparison with statutes and rules in adjacent states

Minnesota

The Minnesota Job Skills Partnership Program is a state grant program which links state businesses with colleges, technical colleges, and universities to provide skill development training to workers. Approximately 70% of the grants go to state manufacturers; the next most numerous category is health care industries. It is a financial match program in which employers provide approximately 2 dollars for every public dollar provided. Partnership grants are awarded in amounts up to $400,000. About 80% of the grants are awarded to Colleges and Technical Colleges within the Minnesota State Community and Technical College system.

Illinois

The Illinois Department of Commerce and Economic Opportunity, Office of Business Development, offers a grant program entitled Employer Training Investment Program. Grants may be awarded to individual businesses or to intermediary organizations operating multi-company training programs. The grants are intended to enable companies to remain competitive, expand into new markets or introduce more efficient technology. ETIP grants may reimburse Illinois companies for up to 50 percent of the eligible cost of training their employees. In fiscal year 2010, this program gave out 15 grants totaling $6.4 million ranging from $60,000 to $1.1 million.

Iowa

The Skilled Iowa Initiative offers assessments, certification programs, and internships in cooperation with public schools, community colleges, and universities, to work with employers seeking to expand the number of available "middle-skill" workers.

Michigan

The Michigan Industry Cluster Approach strategy focuses on five industry clusters (agriculture, energy, healthcare, information technology, and manufacturing) and works with employers to identify industry demand and vacancies, and provide input into the design of educational program offerings and skills requirements. The state's policy is to aligns services and programs with the identified needs for workers and skills. Programs are listed on Michigan's "WIA Eligible Training Provider List" based on input from employers.

Analysis used to determine effect on small business

The analysis is based upon the text of 2013 Wisconsin Act 9 and the proposed rule.

Effect on Small Business

The proposed rule has no effect on a small business that does not apply for a workforce training grant. Any business that chooses to apply for a grant, with or without partners, will have to comply with the administration and reporting requirements of the rule and the grant agreement.

Agency Contact for Program Issues

Dennis C. Schuh, Program Manager

DWD Office of Skills Development

P.O. Box 7946

Madison, WI 53707

[phone]

[e-mail]

Agency Contact for Rulemaking Issues

Howard Bernstein, DWD Legal Counsel

P.O. Box 7946

Madison. WI 53707

[phone]

[e-mail]

STATE OF WISCONSIN DOA 2049 (R 07/2011) ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
ch. DWD 801
Subject
Workforce Training Grants under s. 106.27 (2g), Stats.
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 proposed rule implements the requirement in s. 106.27(2g), Stats., that DWD promulgate rules prescribing procedures and criteria for awarding grants and the information that must be contained in the reports that are required from the grantees.
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)
The proposed rule does not create any costs in the administration of the workforce training grants program that are independent of the fiscal effect of 2013 Wisconsin Act 9 (2013 Assembly Bill 14), which created the program. A copy of the fiscal estimate for AB 14/Act 9 is attached.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule simply carries out the instructions of the statute.
Long Range Implications of Implementing the Rule
None distinct from the statute.
Compare With Approaches Being Used by Federal Government
The rule analysis contains a comparison to the federal Workforce Investment Act.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota )
These comparisons are also in the rule analysis.
Name and Phone Number of Contact Person
Howard Bernstein, Legal Counsel, DWD [phone]