Wisconsin Legislature: Tax 13.09(2)(c)

1. Any municipality which wants to appeal a funding decision by the board shall submit a written appeal to the board within 20 days after notification. The 20-day period begins on the day after the mailing of the board’s decision. The written appeal shall specify in detail:

a. How the board has made a material error of law,

b. How the board has made a material error of fact, or

c. New, pertinent information which was not available to the board at the time of its decision.

2. A representative of an appealing municipality may appear before the board prior to board action on the appeal. The board shall decide whether to reconsider action on an appeal within 30 days after receipt of the written appeal. Any municipality aggrieved by a funding decision of the board may petition the circuit court for a review of the board’s decision within 30 days of its original decision, or if an appeal has been sought as provided in this subdivision, within 30 days of the board’s decision on that appeal. The 30-day period begins on the day after the mailing of the board’s decision. The petition for review shall be served on the board and filed in the office of the clerk of circuit court as specified in s. 227.16, Stats.

(3) Emergency payments.

(a) Any discretionary funds available to the board, may be withdrawn and distributed by the board, at any time, to any municipality which demonstrates its need for financial assistance in alleviating a mining-related impact which is deemed by the board to be sudden and unforeseeable. The policies and procedures presented in sub. (2) (c), shall apply to the distribution and use of emergency reserve monies, except for the specified deadline dates.

(b) The board shall not consider requests for emergency payments from local or joint impact committees for administrative or operational expenses.

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, February, 1986, No. 362, eff. 3-1-86; am. (2) (a) 4., (2) (b), 2. intro. and a. to d. and (3), renum. (2) (c) 6. and 7. to be (2) (c) 9. and 10., cr. (2) (a) 4.a. to c., (2) (a) 6., (2) (b) 2. f. and (2) (c) 6. to 8., r. and recr. (2) (b) 2. c., Register, September, 1986, No. 369, eff. 10-1-86; am. (2) (c) 9. a., Register, August, 1993, No. 452, eff. 9-1-93; corrections in (2) (c) 6. a., 9. a. and c. made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 16-076: r. (1), rn. (2) (c) 9. (intro.) to (2) (c) 9. and am., r. (2) (c) 9. a. to c. Register January 2018 No. 745, eff. 2-1-18.

Tax 13.08 Expenditures.

(6) Mining-related costs. Municipalities may seek approval from the board for mining-related projects. Applications seeking expenditure approval shall contain:

(a) Documentation of a metallic mining impact.

(b) Documentation of need.

(8) Other allowable expenditures. Discretionary grants and other funds disbursed by the board may be applied toward a variety of uses as they relate directly to a mining impact project. In general, costs for the compensation of personal services, costs of materials and supplies, travel, and other administrative costs are allowable. All expenditures shall comply with state and local laws, rules, and policies. Costs which shall not be allowed include:

(a) Costs incurred prior to, and after, the effective date of a discretionary grant period.

(b) Costs of social activities, ceremonies, amusements, and other entertainment.

(d) Costs incurred which are not directly related to the eligible funding activities listed in this chapter.

(9) Mining-related purposes. Except for any first dollar payments to a city, village, town, or Native American community, all funds distributed to a municipality by the board shall be used for mining-related purposes, in accordance with s. 70.375 (1) (bm), Stats.

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, February, 1986, No. 362, eff. 3-1-86; am. (1) (intro.), renum. (2) and (3) to be (7) and (8) and am., r. (4) and (5), cr. (2) to (6), Register, September, 1986, No. 369, eff. 10-1-86; emerg. am. (2) (intro.), (f) and (7) (a), eff. 2-14-92; emerg. am. (2) (intro.) (c), (f), (3) (a), (4) (a) and (7) (a), renum. (3) (j) to be (3) (k), cr. (3) (j), eff. 5-17-93; am. (1) (intro.), (2) (intro.) (c), (f), (3) (a), (4) (a), (7) (a) and (b), renum. (1) 11. to be (1) (k), renum. (3) (j) to be (3) (k), cr. (1) (L), (3) (j) and (9), Register, August, 1993, No. 452, eff. 9-1-93; corrections in (1) (h), (L), and (2) (intro.) made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 16-076: r. (1) to (5), am. (6) (intro.), r. (7) Register January 2018 No. 745, eff. 2-1-18.

Tax 13.09 Audits.

(1) All funds received from the board shall be placed in a segregated account. The board may require financial audits of the recipients of payments under s. 70.395 (2) (d) through (g), Stats. The financial audit may be conducted as part of a municipality’s annual audit, if one is conducted. The costs of the audits shall be paid by the board from the appropriation under s. 20.566 (7) (g), Stats. The audits shall consist of 3 parts:

(a) An examination of the municipality’s financial statements to assess the fairness with which they were reported;

(b) An evaluation of the expenditures to ensure that the grant funds were used for mining impact activities and complied with the grant contract and state laws and rules; and

(c) A review of the municipality’s internal accounting system to determine whether the grant was carefully managed, and where needed, provide suggestions to improve in-house procedures.

(2) The board shall attempt to insure that all grant recipients are audited periodically. In determining whether a grant recipient is to be audited in a particular year, the board shall give priority to:

(a) Grant recipients whose expenditure reports indicate that a financial accounting, compliance, or management problem exists.

(b) Grant recipients who have received grants of $25,000 or more for a given project or for a given year.

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, February, 1986, No. 362, eff. 3-1-86; r. (3), Register,, September, 1986, No. 369, eff. 10-1-86; correction in (1) (intro.)made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609.

Tax 13.10 Fiscal guidelines. All funds disbursed under this chapter shall be governed by the following provisions:

(1) Segregated accounts. All funds disbursed by the board shall be placed by the recipient government in a separate account and the use of funds clearly and directly identified by the accounting procedures listed in s. Tax 13.11.

(2) Investments. Funds may be invested by recipient governments where the investment of revenue is permitted under state and local law. Interest earned on investments shall be credited to the recipient’s segregated mining impact account and is subject to the same limitations which govern the accounting and expenditure of funds in this chapter. Funds may be invested separately or, for investment purposes, pooled with other cash of the jurisdiction. Where a governmental unit operates a pooled-cash investment program, it shall have an equitable procedure for allocating the interest earned on the total portfolio among all funds from which the cash was pooled.

(3) Loans. The recipient municipality may not loan funds to other activities, programs, or projects.

(4) Indirect or administrative costs. All administrative costs shall be accounted for in sufficient detail to document the expenditures. No flat percentage rates or indirect cost rates shall be used.

(5) Travel expenses. Funds may be used to cover reasonable and necessary travel expenses pertaining to mining-related activities. Fund recipients may not claim or authorize rates which exceed the rates allowed by the state of Wisconsin, department of administration. All travel expense rates used by a fund recipient shall be consistent with travel expense rates paid for other activities of the recipient government. If the recipient chooses to pay travel expenses which are higher than state rates, that municipality shall pay the additional cost. Only reasonable and necessary travel expenses shall be claimed.

Note: Travel rates allowed by the Wisconsin department of administration are available upon request from the board.

(6) Meeting rates. Fund recipients may claim or authorize costs up to $20 per person for attending mining-related meetings. All meeting rates claimed by the fund recipient shall be consistent with the meeting rate paid for other activities of that municipality. If the recipient chooses to pay a meeting rate higher than $20 per person, that municipality shall pay the additional cost.

(7) Legal fees. Fund recipients may claim reimbursement for legal counsel for mining-related purposes, pursuant to s. 70.395 (2) (hw), Stats. Recipients which use funds to pay their own attorney shall use the hourly rate which is consistent with other work the attorney does for that recipient.

(8) Supplies and materials. Supplies and materials purchased with mining impact funds shall be purchased at costs which are consistent with costs paid by that municipality for its own supplies and services.

(9) Procurement of services. Fund recipients shall solicit a minimum of 3 proposals when purchasing services for $2,000 or more. This subsection shall apply to technical, planning, engineering, and other consulting and professional services. Public works projects paid with mining impact funds are subject to provisions outlined in ss. 59.08, 60.47, and 62.15, Stats. Procurement procedures shall:

(a) Ensure equal treatment to all prospective bidders.

(b) Maximize open and free competition for services needed.

(d) Ensure the reasons a particular consultant or contractor was chosen are clearly documented.

(e) Ensure sufficient records are available to document the significant history of the procurement.

(f) Ensure services are obtained efficiently and economically.

(g) Ensure that the services are provided by bidders with technical expertise and professional experience in the areas for which the expertise is sought.

(10) Contracts. All services for $2,000 or more, procured with mining impact funds, shall be clearly described in a written contract. The contract shall delineate the terms, conditions, and specification of the services.

(11) Hiring. Hiring of personnel for mining-related purposes shall be done in an open and fair manner.

(12) Other expenditures. Fund recipients shall also ensure all expenditures are:

(a) Necessary and reasonable.

(b) Solely related to the mining impact activity or project.

(13) Expenditures not allowed. Fund recipients may not claim expenditures for:

(a) Retainer fees for attorneys and other consultants.

(b) Overdrawn account charges of a financial institution.

(d) Independent financial or compliance audits.

(e) Social activities, ceremonies, amusements, and entertainments.

(f) Lobbying members of the legislature or other legislative activity.

(g) Building space, lights, heat and janitorial services, except when these costs are incurred and needed as a result of meetings held exclusively for mining related purposes.

(h) Salaries for elected governing body officials for legislative, administrative, and executive purposes.

(14) Guidelines. All recipients of funds from the board shall receive a copy of the relevant statutes, rules, and guidelines detailing proper usage of those funds.

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, September, 1986, No. 369, eff. 10-1-86; emerg. am. (7), eff. 12-14-92; emerg. am. (7), eff. 5-17-93; am. (7) and (9) (intro.), cr. (9) (g) and (14), Register, August, 1993, No. 452, eff. 9-1-93; correction in (9) (intro.) made under s. 13.92 (4) (b) 7., Stats., Register May 2010 No. 653.

Tax 13.11 Accounting procedures. All recipients of funds under this chapter shall maintain accounting procedures which adequately provide for the following:

(1) Accurate, current, and complete financial statements on the use of funds disbursed to them by the board.

(2) Accurate, current, and complete financial statements on funds contributed from other sources toward mining impact projects or activities.

(3) Records which identify adequately the source and application of all funds disbursed to them by the board, including:

(a) Records of transactions which are inclusive, timely, verifiable, and supported by source documentation.

(b) Records on in-kind services and cost-sharing when required by the board for certain discretionary payments under s. Tax 13.07.

(d) Records which are sufficiently detailed.

(e) Itemized invoices to document legal, technical, and other services related to mining.

(4) Effective internal control over all funds, ensuring that:

(a) The use of funds is for purposes authorized by the board and consistent with applicable laws, regulations and policies.

(b) The use of funds is safeguarded against waste, loss and misuse.

(5)

(a) All municipalities which receive a payment or grant under this chapter shall file an expenditure report by March 1 of the year following the year the funds are received. The expenditure report shall be on forms prepared and furnished by the board. A county’s expenditure report shall include information regarding the use of any funds distributed by the county under s.70.396 (2), Stats.

(b) Any city, village, town, or Native American community which receives a first dollar payment is not required to file an expenditure report for that payment.

(c) The board’s staff may make on-site visits over the course of any year and otherwise monitor the use of payments received by municipalities. Staff shall keep the board informed of its activities and findings in this regard. From the monitoring activities, the completed expenditure reports, and the auditing procedures outlined in s. Tax 13.09, the board shall determine whether municipalities have applied their funds to the purposes authorized.

History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; r. and recr. Register, September, 1986, No. 369, eff. 10-1-86; am. (3) (a) and (5) (c), cr. (3) (e), Register, August, 1993, No. 452, eff. 9-1-93; CR 16-076: am. (5) (a) Register January 2018 No. 745, eff. 2-1-18.

Tax 13.12 Recoupment and withholding of payments.

(1) The board may, at any time, recoup direct, discretionary and emergency payments to be made, for noncompliance with ss. 70.395 and 70.396, Stats., or any rule pursuant thereto.

(2) Whenever the board has reason to believe that noncompliance has occurred, it shall hold a hearing on the matter upon written notice to the municipality. If after the hearing the board determines that noncompliance has occurred, it shall recoup such payments to be made and withhold such payments to be made to the municipality as may be appropriate.

History: Cr. Register, September, 1986, No. 369, eff. 10-1-86.