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LRB-3233/1
MED:ahe
2017 - 2018 LEGISLATURE
September 25, 2017 - Introduced by Representative Kuglitsch, cosponsored by
Senator Nass, by request of Unemployment Insurance Advisory Council.
Referred to Committee on Labor.
AB516,2,3 1An Act to repeal 108.22 (8) (b) 1. b. to d., 108.22 (8) (b) 2., 108.22 (8) (b) 3. and
2108.22 (8) (bh); to renumber 108.133 (1) (a); to renumber and amend 108.22
3(3); to consolidate, renumber and amend 108.22 (8) (b) 1. (intro.) and a.; to
4amend
20.445 (1) (aL), 20.445 (1) (u), 20.445 (1) (v), 108.02 (13) (i), 108.04 (1)
5(hm), 108.04 (2) (bm), 108.04 (2) (g) 2., 108.04 (7) (e), 108.04 (8) (b), 108.04 (13)
6(c), 108.04 (13) (e), 108.04 (16) (a) 4., 108.04 (17) (e), 108.05 (3) (d), 108.05 (10)
7(b), 108.062 (2) (m), 108.062 (6) (a), 108.062 (10), 108.09 (4) (d) 2., 108.09 (4) (e)
82., 108.09 (9) (c), 108.095 (8), 108.10 (1), 108.10 (5), 108.133 (2) (intro.), 108.133
9(2) (a) 1., 108.133 (2) (a) 2., 108.133 (2) (a) 3., 108.133 (2) (a) 4., 108.133 (2) (a)
105., 108.133 (2) (b), 108.133 (3) (a) to (e), 108.133 (4) (a), 108.15 (3) (a), 108.15 (5)
11(b), 108.151 (5) (f), 108.155 (4) (intro.), 108.16 (2) (e), 108.16 (2) (em), 108.19
12(1m), 108.21 (2), 108.22 (1m), 108.22 (1r), 108.22 (2), 108.22 (4), 108.22 (5),
13108.22 (9), 108.223 (1) (br), 108.225 (1) (b), 108.225 (4) (b) and 815.29 (1); and
14to create 108.04 (1) (hr), 108.133 (1) (ag), 108.133 (4) (c), 108.16 (6) (p), 108.19

1(1s) (a) 5., 108.19 (1s) (a) 6., 108.22 (1t), 108.22 (2) (c), 108.22 (3) (b), 108.22 (8)
2(d), 108.22 (10) and 108.22 (11) of the statutes; relating to: various changes to
3the unemployment insurance law and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill makes various changes in the unemployment insurance law, which is
administered by the Department of Workforce Development. Significant changes
include all of the following:
Revisions to collections provisions
Current law provides for a number of methods that DWD may use to collect
UI-related debt, such as delinquent contributions and benefit overpayments. The
particular methods that are available depend on the type of debt that is owed. The
bill makes a number of changes to a number of these provisions regarding the
collection of UI-related debt, including all of the following:
1. The bill provides for an unrecorded lien against any person who owes DWD
a debt under the UI law. Currently, such liens are only imposed against employers.
The bill provides that such a lien is effective upon the earlier of the date on which
the amount is first due or the date on which DWD issues a determination of the
amount owed. The bill provides that any such lien is recorded when DWD issues a
warrant for the debt.
2. Current law allows DWD, in certain circumstances, to hold an individual
who is an officer, employee, member, manager, partner, or other responsible person
holding at least 20 percent of the ownership interest of a corporation, limited liability
company, or other business association personally liable for UI contributions and
certain other amounts. This bill deletes the 20 percent ownership requirement.
3. The bill allows DWD to set off any amounts against state tax refund
overpayments. Currently, DWD may only set claimants' benefit overpayments off
against state tax refund overpayments.
4. The bill allows DWD to assess a third party who fails to surrender property
that DWD attempts to collect through levy a penalty in the amount of 50 percent of
the debt owed by the debtor. The bill provides for such assessments to be deposited
in the unemployment program integrity fund. Current law instead provides that the
third party is subject to proceedings to enforce the levy and is liable to the
department for up to 25 percent of the debt.
5. Under current law, DWD may issue a warrant directed to an employee or
other agent of DWD. In the execution of such a warrant, the employee or agent has
all the powers conferred by law upon a sheriff. The bill allows DWD, when executing
such a warrant, to conduct an execution sale of property in any county of this state
and to sell the property in any manner that will bring the highest net bid or price,
including an Internet-based auction or sale.

Fiscal agents; joint and several liability
Under current law, a person receiving certain support services may be provided
the services of a fiscal agent. The fiscal agent is responsible for complying with the
person's duties as an employer under the UI law. This bill provides that a private
agency that serves as a fiscal agent or that contracts with a fiscal intermediary to
serve as a fiscal agent may be found jointly and severally liable for amounts owed by
the person receiving the support services if certain conditions are met.
Requests for information regarding benefit eligibility
Under current law, DWD may require any claimant to answer questions
relating to the claimant's eligibility for benefits. A claimant is ineligible to receive
benefits for any week in which the claimant fails to comply with a request by DWD
to provide the information until the claimant complies with the request. If a claimant
later complies with such a request, the claimant is eligible to receive benefits as of
the week in which the failure to provide information occurred, if otherwise qualified.
The bill modifies this provision so that a claimant who fails to comply with such
a request is ineligible beginning with the week with respect to which the department
questions the claimant's eligibility, instead of the week in which the failure occurs.
If a claimant later complies with such a request, the claimant is eligible to receive
benefits as of the week with respect to which the department questions the claimant's
eligibility, if otherwise qualified.
Ineligibility for benefits for concealment of certain payments
Current law provides that a claimant is totally ineligible for benefits, including
any partial benefits for which the claimant would otherwise be eligible, for each week
the claimant conceals wages or hours worked. This bill similarly provides that a
claimant is totally ineligible for benefits for each week the claimant conceals various
other types of payments, including holiday pay, vacation pay, termination pay, or sick
pay.
Revisions to drug testing statutes
The bill includes a number of changes concerning the testing of UI claimants
for the presence of controlled substances, including all of the following:
1. Providing employers who submit information to DWD about individuals who
fail or refuse to take drug tests civil immunity for acts or omissions with respect to
such submissions.
2. Providing for the transfer, at the end of each fiscal biennium, of any
unencumbered moneys appropriated for drug testing and related expenses to the
unemployment program integrity fund to be used for DWD UI program integrity
activities.
3. Additional changes and clarifications regarding confidentiality of claimants'
information related to drug testing.
Minor and technical changes
The bill includes a number of minor and technical changes to the UI law,
including all of the following:
1. Correcting cross-references, including updating references to federal law.

2. Certain changes regarding eligibility for benefits under the work-share
benefits statute.
3. Updating references to benefit checks to account for electronic payments and
updating references to mailing to account for electronic delivery.
4. Clarifications to the UI appeals process.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB516,1 1Section 1. 20.445 (1) (aL) of the statutes is amended to read:
AB516,4,82 20.445 (1) (aL) Unemployment insurance administration; controlled
3substances testing and substance abuse treatment.
Biennially, the amounts in the
4schedule to conduct for conducting screenings of applicants, testing applicants for
5controlled substances, for the provision of substance abuse treatment to applicants
6and claimants
, and for related expenses under s. 108.133. Notwithstanding s. 20.001
7(3) (b), the unencumbered balance on June 30 of each odd-numbered year shall be
8transferred to the unemployment program integrity fund.
AB516,2 9Section 2. 20.445 (1) (u) of the statutes is amended to read:
AB516,4,1310 20.445 (1) (u) Unemployment interest payments and transfers. From the
11unemployment interest payment fund, a sum sufficient to make all moneys received
12from assessments under s. 108.19 (1m) for the purpose of making
the payments and
13transfers authorized under s. 108.19 (1m).
AB516,3 14Section 3. 20.445 (1) (v) of the statutes is amended to read:
AB516,4,1815 20.445 (1) (v) Unemployment program integrity. From the unemployment
16program integrity fund, a sum sufficient to make all moneys received from sources
17identified under s. 108.19 (1s) (a) for the purpose of making
the payments authorized
18under s. 108.19 (1s) (b).
AB516,4
1Section 4. 108.02 (13) (i) of the statutes is amended to read:
AB516,5,182 108.02 (13) (i) An “employer" employer shall cease to be subject to this chapter
3only upon department action terminating coverage of such employer. The
4department may terminate an “employer's" employer's coverage, on its own motion
5or on application by the “employer" employer, by electronically delivering to the
6employer, or
mailing a notice of termination to the “employer's" employer's
7last-known address, a notice of termination. An employer's coverage may be
8terminated whenever the employer ceased to exist, transferred its entire business,
9or would not otherwise be subject under any one or more of pars. (b) to (g). If any
10employer of agricultural labor or domestic service work becomes subject to this
11chapter under par. (c) or (d), with respect to such employment, and such the employer
12is otherwise subject to this chapter with respect to other employment, the employer
13shall continue to be covered with respect to agricultural labor or domestic service, or
14both, while the employer is otherwise subject to this chapter, without regard to the
15employment or wage requirements under par. (c) or (d). If a termination of coverage
16is based on an employer's application, it shall be effective as of the close of the quarter
17in which the application was filed. Otherwise, it shall be effective as of the date
18specified in the notice of termination.
AB516,5 19Section 5. 108.04 (1) (hm) of the statutes is amended to read:
AB516,6,720 108.04 (1) (hm) The department may require any claimant to appear before it
21and to answer truthfully, orally or in writing, any questions relating to the claimant's
22eligibility for benefits or to provide such demographic information as may be
23necessary to permit the department to conduct a statistically valid sample audit of
24compliance with this chapter
. A claimant is not eligible ineligible to receive benefits
25for any week in about which the claimant fails to comply with a request by the

1department to provide the information required under this paragraph, or any
2subsequent week,
and remains ineligible until the claimant complies with the
3request. Except as provided in sub. (2) (e) and (f), if a claimant later complies with
4a request by the department within the period specified in s. 108.09 (2) (c), the
5claimant is eligible to receive benefits as of the week in which the failure occurred
6about which the department questions the claimant's eligibility, if otherwise
7qualified.
AB516,6 8Section 6. 108.04 (1) (hr) of the statutes is created to read:
AB516,6,179 108.04 (1) (hr) The department may require any claimant to appear before it
10and to provide, orally or in writing, demographic information that is necessary to
11permit the department to conduct a statistically valid sample audit of compliance
12with this chapter. A claimant is ineligible to receive benefits for any week in which
13the claimant fails to comply with a request by the department to provide the
14information required under this paragraph and remains ineligible until the claimant
15complies with the request. If a claimant later complies with a request by the
16department within the period specified in s. 108.09 (2) (c), the claimant is eligible to
17receive benefits as of the week in which the failure occurred, if otherwise qualified.
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