Statement of Scope
Department of Transportation
Relating to:
|
Unified Carrier Registration
System
(UCR)
|
Rule Type:
|
Permanent Rule
|
1.
Finding/nature of emergency (Emergency Rule only):
N/A
2.
Detailed description of the objective of the proposed rule:
The objective of this rule is to fulfill the new requirements of the
Unified Carrier Registration System
(“UCR”) Agreement
adopted by the UCR Board
August 2014.
The UCR Agreement now requires participating states, including Wisconsin,
to
conduct a specified number of audits of UCR motor carriers each year.
The
State of Wisconsin Department of Transportation (“
WisDOT
”)
proposes to create provision
s
in
ch.
Trans 178
to implement a
Wisconsin
UCR audit program. While Wisconsin statute and current rules provide for participation in the UCR and provide enforcement penalties for failure to register, there is no explicit provision for auditing, auditing collection, audit
penalties, and audit sanctions.
A
lso
update language and defined terms in relevant sections in order to provide clarity and consistency.
The proposed rule will not affect
total
Wisconsin revenue received via the UCR program. If the proposed audits increase or reduce the revenue collected by Wisconsin
from specific carriers it will not change the total retained by Wisconsin
.
Total Wisconsin revenue, as for
all
states
,
is capped by the State Revenue Entitlement figures described in
Fees for the Unified Carrier
Registration Plan and Agreement, 75 Fed. Reg. 21993
,
April 27, 2010
, Table 5,
pages 22008-22009
.
Wisconsin revenue each year
historically
exceeds it
s entitlement figure. Therefore Wisconsin
remits the excess to the Unified Carrier Registration Board per
49 USC
14504
a
(
h)(2). The UCR Board distributes the total excess collected to states which have not received revenue exceeding
their
entitlement figure
s
, per
49 USC
14504
a
(
h)(2)
.
3.
Description of the existing policies relevant to the rule, new policies proposed to be included in the rule, and an analysis of policy alternatives:
The following is an explanation of the proposed changes to
ch.
Trans 178
.
1.
C
reate provision
s
in Wisconsin
administrative code
to implement a UCR audit program. While Wisconsin statute and rule provide for participation in the UCR, and provide enforcement
penalties
for failure to register, there are
no explicit provision
s
for auditing, auditing collection, audit penalties, and audi
t sanctions.
2.
Similar to Trans 152 for
International Registration Plan
(“IRP”)
and
International Fuel Tax Agreement
(“IFTA”)
, add
ing
audit provisions to Trans 178 regarding UCR
is
a good method to
provide for these requirements in
Wisconsin law
. For
example
, add
ing
provisions
similar
to:
Subchapter III — Audits, Assessments and Appeals
Trans 152.13 Audits and assessments. (1)
AUDIT.
The department may conduct such audits that it deems necessary
to determine the adequacy of the taxes or fees paid under this
chapter. All records described in this chapter shall be made available
to the department at its request.
T
rans 152.16 Jeopardy assessment.
Before any tax or
fee becomes due, if the department has reason to believe that any
licensee or registrant, including former registrants or licensees,
intends or is likely to evade or attempt to evade payment of the tax
or fee when due, or intends or is likely to convey, dispose of, or
conceal his or her property or abscond from the state, or do any
other act which would render the state insecure in the collecting
the tax or fee when due, the department may demand
payment
forthwith of all taxes and fees a
ccrued by the licensee or registrant,
which shall immediately become payable and collectible as if
delinquent, and the property of the licensee or registrant shall be
subject to attachment as provided in s.
78.70
, Stats.
Subchapter IV – Collections
Trans 152.17 Actions to collect tax, fees and penalties.
(1)
DEPARTMENT COLLECTION. The department shall make
initial efforts to collect delinquent fuel tax and registration fees.
The department may:
(a) Assess the person responsible for paying the fuel use taxes
and registration fees. The department may subpoena any records
necessary to determine the person responsible for paying the fuel
use taxes and registration fees. Any officer, employee, fiduciary
or agent who is responsible for paying taxes, fees, interest, penalties
or other charges under this chapter incurred by another person
but not paid is personally liable for those taxes, fees, interest, penalties
or other charges. The officer, employee, fiduciary or agent
may appeal that determination under the procedures of
subch
.
III.
(b) Suspend or refuse to issue any permit, license or registration
to any person who is responsible for paying the fee, taxes,
interest or penalty under this chapter.
(2)
THIRD PARTY COLLECTION. The department may refer for
collection any delinquent fuel taxes and registration fees to the
department of revenue. The department of revenue may collect
any
delinquent fuel taxes and registration fees as it collects motor
vehicle fuel and alternative fuel general aviation taxes under s.
78.70
, Stats.
The rule changes under consideration include:
•
Adop
t
audit policy and procedure to
comply with UCR. Create policy and procedure for notifying carriers of an upcoming audit and requesting carriers UCR records to conduct an audit. Notify carriers of any finding of non-compliance, and provide a metho
d for amending filing and fees.
•
Adopt
audit policy and procedure to comply with UCR, and also adopt po
licy and procedure for collecting unpaid/underpaid fees,
refunding overpayments,
assessing penalties for non-compliance, revoking UCR for non-compliance, and assess penalties for non-filers
, consistent with audit procedures in place for
IFTA and IRP
in Trans 152.13.
4.
Detailed explanation of statutory authority for the rule (including the statutory citation and language)
The statutory authority for
ch.
Trans. 178
Wis. Admin. Code, is provided in s.
194.407
,
Wis
Stats.
194.407
Unified
carrier registration system.
194.407(1)
(1)
T
he department may participate in and do all things necessary to implement and administer a unified carrier registration system for motor carriers, including private motor carriers, in accordance with
49 USC 13908
and
14504a
. The department may, consistent with federal law, establish by rule an annual fee under this section for a motor vehicle that is operated in this state and that is subject to the unified carrier registration system.
(3)
The department may use the emergency rules procedure under s.
227.24
to promulgate rules establishing the annual fee specified in sub. (1). Notwithstanding s.
227.24 (1) (c)
and
(2)
, these emergency rules may remain in effect until a subsequent rule is promulgated under this subsection or until the date on which permanent rules take effect, whichever is sooner. Notwithstanding s.
227.24 (1) (a)
and
(3)
, the department is not required to provide evidence that promulgating a rule under this subsection as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this subsection.
1
94.407 Cross-reference
Cross-reference:
See also
ch.
Trans 178
, Wis.
adm.
co
de.
5.
Estimate of amount of time that state employees will spend developing the rule and of other resources necessary to develop the rule:
94 hours
6.
List with description of all entities that may be affected by the proposed rule:
Affected Party
|
Number of Affected
|
Description
|
Wisconsin Motor Carriers Association
|
1
|
Statewide Trucking & Bus
Association
|
Wisconsin based interstate
Trucking companies
|
9,000
|
No more than 1% will be
required to be audited
annually
|
Wisconsin based interstate
Bus companies
|
50
|
No more than 1% will be
required to be audited
annually
|
7. Summary and preliminary comparison with any existing or proposed federal regulation that is intended to address the activities to be regulated by the proposed rule:
As a “base-state” program, UCR is a federally designed program
with significant
similar
ities
to
the
IRP and IFTA programs
.
As base-state programs, motor carriers obtain credentials from their home
state. T
he credentials authorize them to operate
in their home state,
and
in all other participating
states
.
(Note: IRP and IFTA participating jurisdictions include the District of Columbia and ten Canadian provinces. UCR does not include
these jurisdictions).
Fees and taxes are collected by the base state
from motor carriers
based in that state
. The base state then
share
s
and
net
s
fees and taxes
each month
with other jurisdictions to provide to each jurisdiction the fees and taxes due each
jurisdiction.
IRP and IFTA, and now UCR, require jurisdictions to audit the compliance of its respective motor carriers
with the program
, and to collect or refund fees and taxes based on the audit results.
8. Anticipated economic impact of implementing the rule (note if the rule is likely to have a significant economic impact on small businesses):
UCR may have a small effect on a small number of Wisconsin based
interstate trucking companies
.
For companies up to 1,000 trucks, the maximum underpayment would be up to $76 per year
, per truck
. It is estimated that penalties adopted in the rule would likely incr
ease this by no more than 100%.
For companies with more than 1,000 trucks, the fee per vehicle maxes out at flat fee for $73,346 for 1,001 or more vehicles. So the average maximum underpayment of the fee itself would decline arithmetically from $73.346 per vehicle as the number of a com
pany’s vehicles exceeds 1,000.
Contact Person:
Jody Grossman, Motor Carrier Audit Supervisor
Wisconsin Department of Transportation – Division of Motor Vehicles
4802 Sheboygan Avenue, Room 151
Madison, WI, 53707
Phone: (608) 264-7239
