CR 19-122 Rule Text

ORDER OF THE DEPARTMENT OF REVENUE AMENDING RULES

The Wisconsin Department of Revenue proposes an order to: amend Tax 11.05 (3) (L), 11.08 (6) (Note 2), 11.17 (4) (a) 3., 11.45 (4) (b) 3., 11.83 (15) (Note 2), and 11.87 (3) (b) relating to derogatory or offensive terminology.

The scope statement for this rule, SS 048-19, was approved by the Governor on May 30, 2019, published in Register No. 762A1 on June 3, 2019, and approved by the Secretary of Revenue on June 18, 2019.

Analysis by the Department of Revenue

Statutes interpreted: Tax 11.05 – ss. 77.52 (1), (2), (13), and (14) and 77.54 (9a), (10), (15), (17), (20n), (30), (32), (37), (42), (44), and (55), Stats.

Tax 11.08 – ss. 77.51 (3pm), (7m), and (11m) and 77.54 (22b) and (28), Stats.

Tax 11.17 – ss. 77.51 (3pj), (3pm), (7m), and (11m), 77.52 (1) and (2) (a) 1. and 9., and 77.54 (9a), (14), (14m), (14r), (20n), (22b), and (28), Stats.

Tax 11.45 – ss. 77.51 (3pj), (3pm), (7m), and (11m) and 77.54 (14), (14m), (22b), and (28), Stats.

Tax 11.83 – ss. 77.51 (7m), (13) (am), (14) (j), and (15b) (b) 6., 77.52 (1), (2) (a) 10. and 13m., and (15), 77.53 (1),(1m), (16), (17), and (18), 77.54 (5) (a), (c) and (d), (7) and (22b), 77.56 (2) and (3), 77.61 (1), 77.71 (2) and (4), and 77.73, Stats.

Tax 11.87 – ss. 77.51 (10m), (12m), (14) (b) and (f), and (15b) and 77.54 (20n) and (20r), Stats.

Statutory authority: s. 227.11 (2), Stats.

Explanation of agency authority: Section 227.11 (2), Stats., provides statutory rule-making authority as follows:

(a)

"Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute...”

(b)

"Each agency authorized to exercise discretion in deciding individual cases may formalize the general policies evolving from its decisions by promulgating the policies as rules …"

Executive Order #15, signed on March 12, 2019, states:

Now, therefore, I, Tony Evers, Governor of the State of Wisconsin, by the authority vested in me by the Constitution and the Laws of the State, hereby order the following:

1.

Direct each State Agency to review its administrative rules and replace any derogatory or offensive terminology with current, inclusive terminology. This includes, but is not limited to replacing:

a.

"Mentally retarded" with "intellectually disabled";

b.

"Mental retardation" with "intellectual disability"; and

c.

"Handicapped" with "disabled."

2.

Direct each State Agency to complete its review and submit a scope statement to make such changes no later than 90 days from the date of this order.

Related statute or rule: There are no other applicable statutes or rules.

  Plain language analysis: Executive Order #15 provides for each state agency to review its administrative rules and replace any derogatory or offensive terminology with current inclusive terminology. This includes replacing "mentally retarded" with "intellectually disabled", "mental retardation" with "intellectual disability", and "handicapped" with "disabled".

The new policy proposed is related to Executive Order #15. This proposed rule will replace all instances of "handicapped" with "disabled" as found in Chapter Tax 11.

Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states: The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies: Executive Order #15 provides for each state agency to review its administrative rules and replace any derogatory or offensive terminology with current inclusive terminology. This includes replacing "mentally retarded" with "intellectually disabled", "mental retardation" with "intellectual disability", and "handicapped" with "disabled". The department has created this proposed rule order to reflect this change. No other data was used in the preparation of this proposed rule order or this analysis.

Analysis and supporting documents used to determine effect on small business: This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.

Anticipated costs incurred by private sector: This proposed rule order does not have a fiscal effect on the private sector.

Effect on small business: This proposed rule order does not affect small business.

Agency contact person: Please contact Jen Chadwick at [phone] or [e-mail], if you have any questions regarding this proposed rule.

Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than the date on which the public hearing on this proposed rule is conducted. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.

Jen Chadwick

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

[e-mail]

.

SECTION 1. Tax 11.05 (3) (L) is amended to read:

Tax 11.05 (3) (L) Food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, community-based residential facilities as defined in s. 50.01 (1g), Stats., and any facility certified or licensed under ch. 48, Stats., such as day care centers, child placement agencies, residential care centers, foster homes, treatment foster homes, group homes and shelter care facilities, including prepared food sold to the elderly or handicapped disabled by “mobile meals on wheels." Sales of alcoholic beverages by these organizations are taxable.

SECTION 2. Tax 11.08 (6) (Note 2) is amended to read: