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January 2021 Special Session
2021 - 2022 LEGISLATURE
February 17, 2021 - Introduced by Joint Committee on Finance. Referred to Joint
Committee on Finance.
SB1,1,6 1An Act to amend 20.445 (1) (n), 20.445 (1) (nb) (title), 108.14 (2e), 108.17 (2) (b),
2108.17 (2b), 108.17 (7) (a) and 108.205 (2); and to create 20.445 (1) (ar), 20.445
3(1) (nc) and 108.14 (26m) of the statutes; relating to: transactions with the
4Department of Workforce Development under the unemployment insurance
5law, funding for unemployment insurance modernization efforts, granting
6rule-making authority, and making an appropriation.
Analysis by the Legislative Reference Bureau
Currently, with certain exceptions, each employer that has employees who are
engaged in employment covered by the unemployment insurance law must file
quarterly contribution (tax) and employment and wage reports and make quarterly
payment of its contributions to the Department of Workforce Development. An
employer of 25 or more employees or an employer agent that files reports on behalf
of any employer must file its reports electronically. Current law also requires each
employer that makes contributions for any 12-month period ending on June 30 equal
to a total of at least $10,000 to make all contribution payments electronically in the
following year. Finally, current law allows DWD to provide a secure means of
electronic interchange between itself and employing units, claimants, and other
persons that, upon request to and with prior approval by DWD, may be used for
transmission or receipt of any document specified by DWD that is related to the
administration of the UI law in lieu of any other means of submission or receipt.

This bill makes use of these electronic methods mandatory in all cases, unless
the employer or other person demonstrates good cause for being unable to use the
electronic method, as determined by DWD by rule. The bill also provides that DWD
may permit the use of electronic records and electronic signatures for any document
specified by DWD that is related to the administration of the UI law.
The bill also creates appropriations to provide general purpose revenue (GPR)
and federal funding to DWD for the renovation and modernization of unemployment
insurance information technology systems and appropriates $5,320,000 GPR for this
purpose.
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:
SB1,1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
SB1,2 3Section 2. 20.445 (1) (ar) of the statutes is created to read:
SB1,2,64 20.445 (1) (ar) Unemployment insurance; information technology systems;
5general purpose revenue.
As a continuing appropriation, the amounts in the schedule
6for the purpose specified in s. 108.19 (1e) (d).
SB1,3 7Section 3. 20.445 (1) (n) of the statutes is amended to read:
SB1,3,218 20.445 (1) (n) Employment assistance and unemployment insurance
9administration; federal moneys.
All federal moneys received, as authorized by the
10governor under s. 16.54, for the administration of employment assistance and

1unemployment insurance programs of the department, for the performance of the
2department's other functions under subch. I of ch. 106 and ch. 108, and to pay the
3compensation and expenses of appeal tribunals and of employment councils
4appointed under s. 108.14, to be used for such purposes, except as provided in s.
5108.161 (3e), and, from the moneys received by this state under section 903 (d) of the
6federal Social Security Act, as amended, to transfer to the appropriation account
7under par. (nb) an amount determined by the treasurer of the unemployment reserve
8fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the
9amounts in the schedule under par. (nb), to transfer to the appropriation account
10under par. (nd) an amount determined by the treasurer of the unemployment reserve
11fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the
12amounts in the schedule under par. (nd), to transfer to the appropriation account
13under par. (ne) an amount not exceeding the lesser of the amount specified in s.
14108.161 (4) (d) or the sum of the amounts in the schedule under par. (ne) and the
15amount determined by the treasurer of the unemployment reserve fund that is
16required to pay for the cost of banking services incurred by the unemployment
17reserve fund, and, from any other federal moneys received by this state for the
18purpose specified in s. 108.19 (1e) (d), to transfer to the appropriation account under
19par. (nc) an amount determined by the treasurer of the unemployment reserve fund,

20and to transfer to the appropriation account under s. 20.427 (1) (k) an amount
21determined by the treasurer of the unemployment reserve fund.
SB1,4 22Section 4. 20.445 (1) (nb) (title) of the statutes is amended to read:
SB1,3,2423 20.445 (1) (nb) (title) Unemployment administration; information technology
24systems
; other federal moneys.
SB1,5 25Section 5. 20.445 (1) (nc) of the statutes is created to read:
SB1,4,3
120.445 (1) (nc) Unemployment administration; information technology
2systems; federal moneys.
All moneys transferred from par. (n), for the purpose
3specified in s. 108.19 (1e) (d).
SB1,6 4Section 6 . 108.14 (2e) of the statutes is amended to read:
SB1,4,205 108.14 (2e) The department may shall provide a secure means of electronic
6interchange between itself and employing units, claimants, and other persons that,
7upon request to and with prior approval by the department, may
shall be used for
8departmental transmission or receipt of any document specified by the department
9that is related to the administration of this chapter in lieu of any other means of
10submission or receipt specified in this chapter. The secure means of electronic
11interchange shall be used by employing units, claimants, and other persons unless
12a person demonstrates good cause for not being able to use the secure means of
13electronic interchange. The department shall determine by rule what constitutes
14good cause, for purposes of this subsection. Subject to s. 137.25 (2) and any rules
15promulgated thereunder, the department may permit the use of the use of electronic
16records and electronic signatures for any document specified by the department that
17is related to the administration of this chapter.
If a due date is established by statute
18for the receipt of any document that is submitted electronically to the department
19under this subsection, then that submission is timely only if the document is
20submitted by midnight of the statutory due date.
SB1,7 21Section 7. 108.14 (26m) of the statutes is created to read:
SB1,4,2422 108.14 (26m) (a) The department shall allocate all available federal funding
23for the purpose specified in s. 108.19 (1e) (d) before allocating any general purpose
24revenue for that purpose.
SB1,5,8
1(b) If federal funding is received for the purpose specified in s. 108.19 (1e) (d)
2prior to July 1, 2023, the secretary of administration may, to the extent permitted
3under federal law, lapse from the appropriation under s. 20.445 (1) (nc) to the general
4fund an amount not to exceed the amounts in the schedule under s. 20.445 (1) (ar)
5or the amount of federal funding received, whichever is less. This paragraph does
6not apply with respect to amounts received as administrative grants by the state
7under 42 USC 502 or to amounts received by this state under section 903 (d) of the
8federal Social Security Act, as amended, 42 USC 1103.
SB1,8 9Section 8 . 108.17 (2) (b) of the statutes is amended to read:
SB1,5,2010 108.17 (2) (b) The department may shall electronically provide a means
11whereby an employer that files its employment and wage reports electronically may
12determine the amount of contributions due for payment by the employer under s.
13108.18 for each quarter. If an employer that is subject to a contribution requirement
14files its employment and wage reports under s. 108.205 (1) electronically, in the
15manner prescribed by the department for purposes of this paragraph, the
16department may require the employer to determine electronically the amount of
17contributions due for payment by the employer under s. 108.18 for each quarter. In
18such case, the employer is excused from filing contribution reports under par. (a).
19The employer shall pay the amount due for each quarter by the due date specified
20in par. (a).
SB1,9 21Section 9 . 108.17 (2b) of the statutes is amended to read:
SB1,6,922 108.17 (2b) The department shall prescribe a form and methodology for filing
23contribution reports under sub. (2) electronically. Each employer of 25 or more
24employees, as determined under s. 108.22 (1) (ae),
that does not use an employer
25agent to file its contribution reports under this section shall file its contribution

1reports electronically in the manner and form prescribed by the department, unless
2the employer demonstrates good cause for not being able to file contribution reports
3electronically. The department shall determine by rule what constitutes good cause,
4for purposes of this subsection
. Each employer that becomes subject to an electronic
5reporting requirement under this subsection shall file its initial report under this
6subsection for the quarter during which the employer becomes subject to the
7reporting requirement. Once an employer becomes subject to a reporting
8requirement under this subsection, it shall continue to file its reports under this
9subsection unless that requirement is waived by the department.
SB1,10 10Section 10 . 108.17 (7) (a) of the statutes is amended to read:
SB1,6,2011 108.17 (7) (a) Each employer whose net total contributions paid or payable
12under this section for any 12-month period ending on June 30 are at least $10,000

13shall pay all contributions under this section by means of electronic funds transfer
14beginning with the next calendar year, unless the employer demonstrates good cause
15for not being able to pay contributions by electronic funds transfer. The department
16shall determine by rule what constitutes good cause, for purposes of this subsection
.
17Once an employer becomes subject to an electronic payment requirement under this
18paragraph, the employer shall continue to make payment of all contributions by
19means of electronic funds transfer unless that requirement is waived by the
20department.
SB1,11 21Section 11 . 108.205 (2) of the statutes is amended to read:
SB1,7,822 108.205 (2) Each employer of 25 or more employees, as determined under s.
23108.22 (1) (ae),
that does not use an employer agent to file its reports under this
24section shall file the quarterly report under sub. (1) electronically in the manner and
25form prescribed by the department, unless the employer demonstrates good cause for

1not being able to file reports electronically. The department shall determine by rule
2what constitutes good cause, for purposes of this subsection
. An employer that
3becomes subject to an electronic reporting requirement under this subsection shall
4file its initial report under this subsection for the quarter during which the employer
5becomes subject to the reporting requirement. Once an employer becomes subject
6to the reporting requirement under this subsection, the employer shall continue to
7file its quarterly reports under this subsection unless that requirement is waived by
8the department.
SB1,12 9Section 12 . Nonstatutory provisions.
SB1,7,1310 (1) Unemployment insurance; electronic interchange. The department of
11workforce development shall submit a notice to the legislative reference bureau for
12publication in the Wisconsin Administrative Register indicating the date upon which
13the department is able to implement the treatment of s. 108.14 (2e).
SB1,13 14Section 13 . Effective dates. This act takes effect on the first Sunday after
15publication, except as follows:
SB1,7,1816 (1) Unemployment insurance; electronic interchange. The treatment of s.
17108.14 (2e) takes effect on the date specified in the notice published in the Wisconsin
18Administrative Register under Section 12 (1 ) of this act.
SB1,7,1919 (End)
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