SB672: Bill Text

This bill creates a segregated fund to receive various program revenue moneys received by DWD under the UI law that are not otherwise credited to other segregated funds, including various moneys collected by DWD as interest and penalties under the UI law and all other nonfederal moneys received for the administration of the UI law that are not otherwise appropriated. Current law provides for depositing these revenues in appropriations in the general fund.

Charging of certain benefits

Under current law, whenever UI benefits are chargeable based on federal employment, DWD is to charge those benefits to the federal government. The bill allows DWD to instead pay those benefits from interest and penalty moneys appropriated to DWD in the case where the federal government refuses to reimburse the benefits.

Other changes

The bill makes various changes to a) reorganize, clarify, and update provisions relating to the financing of the UI law; and b) address numerous out-of-date or erroneous cross-references in the UI law, including all of the following:

1. Repealing and consolidating certain appropriations and making other changes to clarify the funding sources and receiving appropriations for various revenues and expenses under the UI law.

2. Creating a program revenue appropriation for the Labor and Industry Review Commission to collect moneys received for the copying and generation of documents and for other services provided in carrying out its functions.

3. Changing certain out-of-date cross-references to federal law to reflect current federal law and the current numbering under the U.S. Code.

4. Repealing certain provisions that reference federal laws that have been repealed and deleting other obsolete references to state laws.

5. Correcting various cross-references that are otherwise incomplete or erroneous.

6. Replacing certain references to provisions in federal acts or to the Internal Revenue Code with references to the U.S. Code in order to facilitate accessibility to federal law.

7. Making other nonsubstantive changes to the unemployment insurance law to improve organization, modernize language, and provide further clarity, specificity, and consistency in the law.

For further information see the state 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:

SB672,1 Section 1 . 20.427 (1) (g) of the statutes is created to read:

SB672,3,5 20.427 (1) (g) Agency collections. All moneys received from fees or other charges for copying of documents, generation of copies of documents from optical disc or electronic storage, publication of books, and other services provided in carrying out the functions of the commission.

SB672,2 Section 2 . 20.445 (1) (gc) of the statutes is renumbered 20.445 (1) (wc) and amended to read:

SB672,3,10 20.445 (1) (wc) Unemployment administration. All From the unemployment administration fund, all moneys received by the department under s. 108.19 not otherwise appropriated under this subsection (1) for the administration of ch. 108.

SB672,3 Section 3 . 20.445 (1) (gd) of the statutes is renumbered 20.445 (1) (wd) and amended to read:

SB672,4,25 20.445 (1) (wd) Unemployment interest and penalty payments. All From the unemployment administration fund, all moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and (13) (c) and 108.22 except interest and penalties deposited under s. 108.19 (1q), and forfeitures under s. 103.05 (5), all moneys not appropriated under par. (gg) and 108.20 (3), all moneys received as forfeitures under s. 103.05 (5), all moneys received under s. 108.09 (5) (c), all moneys received under s. 108.14 (16), all moneys received under s. 108.18 (1) (c), all moneys transferred to this appropriation account from the appropriation account under par. (gh) (wh), and all other nonfederal moneys received for the employment service or for the administration of ch. 108 that are not otherwise appropriated under this subsection, for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c) and (7), for the payment of interest to employers under s. 108.17 (3m), for research relating to the condition of the unemployment reserve fund under s. 108.14 (6), for administration of the unemployment insurance program and federal or state unemployment insurance programs authorized by the governor under s. 16.54, for satisfaction of any federal audit exception concerning a payment from the unemployment reserve fund or any federal aid disallowance concerning the unemployment insurance program, for assistance to the department of justice in the enforcement of ch. 108, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act 42 USC 1321 to 1324 to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20.

SB672,4 Section 4. 20.445 (1) (gg) of the statutes is repealed.

SB672,5 Section 5 . 20.445 (1) (gh) of the statutes is renumbered 20.445 (1) (wh) and amended to read:

SB672,5,9 20.445 (1) (wh) Unemployment information technology systems; assessments. All From the unemployment administration fund, all moneys received from assessments levied under s. 108.19 (1e) (a) and 1997 Wisconsin Act 39, section 164 (2), for the purpose specified in s. 108.19 (1e) (d). The treasurer of the unemployment reserve fund may transfer moneys from this appropriation account to the appropriation account under par. (gd) (wd).

SB672,6 Section 6 . 20.445 (1) (gm) of the statutes is repealed.

SB672,7 Section 7 . 20.445 (1) (n) of the statutes is amended to read:

SB672,6,8 20.445 (1) (n) Employment assistance and unemployment insurance administration; federal moneys. All federal moneys received, as authorized by the governor under s. 16.54, for the administration of employment assistance and unemployment insurance programs of the department, for the performance of the department's other functions under subch. I of ch. 106 and ch. 108, and to pay the compensation and expenses of appeal tribunals and of employment councils appointed under s. 108.14, to be used for such purposes, except as provided in s. 108.161 (3e), and, from the moneys received by this state under section 903 42 USC 1103 (d) of the federal Social Security Act, as amended, to transfer to the appropriation account under par. (nb) an amount determined by the treasurer of the unemployment reserve fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nb), to transfer to the appropriation account under par. (nd) an amount determined by the treasurer of the unemployment reserve fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nd), to transfer to the appropriation account under par. (ne) an amount not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the sum of the amounts in the schedule under par. (ne) and the amount determined by the treasurer of the unemployment reserve fund that is required to pay for the cost of banking services incurred by the unemployment reserve fund, and to transfer to the appropriation account under s. 20.427 (1) (k) an amount determined by the treasurer of the unemployment reserve fund.

SB672,8 Section 8 . 20.445 (1) (nb) of the statutes is amended to read:

SB672,6,18 20.445 (1) (nb) Unemployment administration; information technology systems. From the moneys received from the federal government under section 903 42 USC 1103 (d) of the federal Social Security Act, as amended, as a continuing appropriation, the amounts in the schedule, as authorized by the governor under s. 16.54, for the purpose specified in s. 108.19 (1e) (d). All moneys transferred from par. (n) for this purpose shall be credited to this appropriation account. No moneys may be expended from this appropriation unless the treasurer of the unemployment reserve fund determines that such expenditure is currently needed for the purpose specified in s. 108.19 (1e) (d).

SB672,9 Section 9 . 20.445 (1) (nd) of the statutes is amended to read:

SB672,7,6 20.445 (1) (nd) Unemployment administration; apprenticeship and other employment services. From the moneys received from the federal government under section 903 42 USC 1103 (d) of the federal Social Security Act, as amended, the amounts in the schedule, as authorized by the governor under s. 16.54, to be used for administration by the department of apprenticeship programs under subch. I of ch. 106 and for administration and service delivery of employment and workforce information services, including the delivery of reemployment assistance services to unemployment insurance claimants. All moneys transferred from par. (n) for this purpose shall be credited to this appropriation account. No moneys may be expended from this appropriation unless the treasurer of the unemployment reserve fund determines that such expenditure is currently needed for the purposes specified in this paragraph.

SB672,10 Section 10 . 20.445 (1) (ne) of the statutes is amended to read:

SB672,7,16 20.445 (1) (ne) Unemployment insurance administration and bank service costs. From the moneys received by this state under section 903 of the federal Social Security Act, as amended 42 USC 1103, all moneys transferred from the appropriation account under par. (n) to be used for the administration of unemployment insurance and for the payment of the cost of banking services incurred by the unemployment reserve fund. No moneys may be expended from this appropriation unless the treasurer of the unemployment reserve fund determines that such expenditure is currently needed for the purpose specified in this paragraph.

SB672,11 Section 11 . 20.445 (1) (u) of the statutes is amended to read:

SB672,7,21 20.445 (1) (u) Unemployment interest payments and transfers. From the unemployment interest payment fund, all moneys received from assessments under s. 108.19 (1m) (a) for the purpose of making the payments and transfers authorized under s. 108.19 (1m) (f).

SB672,12 Section 12 . 20.445 (1) (v) of the statutes is amended to read:

SB672,8,2 20.445 (1) (v) Unemployment program integrity. From the unemployment program integrity fund, all moneys received from sources identified under s. 108.19 (1s) 108.20 (2) (a) for the purpose of making the payments authorized under s. 108.19 (1s) 108.20 (2) (b).

SB672,13 Section 13 . 25.17 (1) (xe) of the statutes is amended to read:

SB672,8,4 25.17 (1) (xe) Unemployment interest payment fund (s. 108.19 (1q) 108.20 (3));

SB672,14 Section 14 . 25.17 (1) (xf) of the statutes is amended to read:

SB672,8,6 25.17 (1) (xf) Unemployment program integrity fund (s. 108.19 (1s) 108.20 (2));

SB672,15 Section 15 . 103.05 (5) (d) of the statutes is amended to read:

SB672,8,9 103.05 (5) (d) The department shall deposit all moneys received under this subsection in the appropriation account under s. 20.445 (1) (gd) (wd).

SB672,16 Section 16 . 108.02 (1) of the statutes is repealed.

SB672,17 Section 17 . 108.02 (2) (c) of the statutes is amended to read:

SB672,8,17 108.02 (2) (c) In connection with the production or harvesting of any commodity defined as an agricultural commodity in s. 15 (g) of the federal agricultural marketing act, as amended (46 Stat. 1550, s. 3; under 12 USC 1141j) or (f), in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes.

SB672,18 Section 18 . 108.02 (13) (c) 2. a. of the statutes is amended to read:

SB672,8,23 108.02 (13) (c) 2. a. Such crew leader holds a valid certificate of registration under the federal farm labor contractor registration act of 1963 29 USC 1801 to 1872; or substantially all the members of such crew operate or maintain tractors, mechanized harvesting or cropdusting equipment, or any other mechanized equipment which is provided by such crew leader; and

SB672,19 Section 19 . 108.02 (14) of the statutes is amended to read:

SB672,9,4 108.02 (14) Employer's account. “ Employer's account" means a an employer's separate account in the fund, reflecting the employer's experience with respect to contribution credits and benefit charges under this chapter maintained as required under s. 108.16 (2) (a).

SB672,20 Section 20 . 108.02 (15) (j) 5. of the statutes is amended to read:

SB672,9,10 108.02 (15) (j) 5. In any quarter in the employ of any organization exempt from federal income tax under section 26 USC 501 (a) of the internal revenue code, other than an organization described in section 26 USC 401 (a) or 501 (c) (3) of such code, or under section 26 USC 521 of the internal revenue code, if the remuneration for such service is less than $50;

SB672,21 Section 21 . 108.02 (15) (k) 5. of the statutes is amended to read:

SB672,9,14 108.02 (15) (k) 5. With respect to which unemployment insurance is payable under the federal railroad unemployment insurance act (52 Stat. 1094) 45 USC 351 to 369;

SB672,22 Section 22 . 108.02 (17m) of the statutes is amended to read:

SB672,9,18 108.02 (17m) Indian tribe. “Indian tribe" has the meaning given in 25 USC 450b 5304 (e), and includes any subdivision, subsidiary, or business enterprise that is wholly owned by such an entity.

SB672,23 Section 23 . 108.02 (19) of the statutes is amended to read:

SB672,9,23 108.02 (19) Nonprofit organizations. “ Nonprofit organization" means an organization described in section 26 USC 501 (c) (3) of the Internal Revenue Code that is exempt from federal income tax under section 26 USC 501 (a) of the Internal Revenue Code.

SB672,24 Section 24 . 108.02 (26) (c) 9. of the statutes is repealed.

SB672,25 Section 25 . 108.02 (26) (c) 14. of the statutes is repealed.

SB672,26 Section 26 . 108.04 (7) (h) of the statutes is renumbered 108.04 (7) (u).

SB672,27 Section 27 . 108.04 (11) (f) of the statutes is amended to read:

SB672,10,5 108.04 (11) (f) All amounts forfeited under par. (c) and all collections from administrative assessments under par. (cm) shall be credited to the administrative account appropriation under s. 20.445 (1) (wd).

SB672,28 Section 28 . 108.04 (12) (b) of the statutes is amended to read:

SB672,10,10 108.04 (12) (b) Any individual who receives, through the department, any other type of unemployment benefit or allowance for a given week is ineligible for benefits for that same week under this chapter, except as specifically required for conformity with the federal trade act of 1974 (P.L. 93-618) 19 USC 2101 to 2497b.

SB672,29 Section 29 . 108.04 (16) (d) 1. of the statutes is amended to read:

SB672,10,18 108.04 (16) (d) 1. The department shall not deny benefits under sub. (7) as a result of the individual's leaving unsuitable work to enter or continue such training, as a result of the individual's leaving work that the individual engaged in on a temporary basis during a break in the training or a delay in the commencement of the training, or because the individual left on-the-job training not later than 30 days after commencing that training because the individual did not meet the requirements of the federal trade act under 19 USC 2296 (c) (1) (B); and

SB672,30 Section 30 . 108.04 (18) (a) of the statutes is amended to read:

SB672,11,6 108.04 (18) (a) The wages paid to an employee who performed services while the employee was an alien shall, if based on such services, be excluded from the employee's base period wages for purposes of sub. (4) (a) and ss. 108.05 (1) and 108.06 (1) unless the employee is an alien who was lawfully admitted for permanent residence at the time such services were performed, was lawfully present for the purpose of performing such services, or was permanently residing in the United States under color of law at the time such services were performed, including an alien who was lawfully present in the United States as a result of the application of the provisions of section 212 (d) (5) of the federal immigration and nationality act (8 USC 1182 (d) (5)). All claimants shall be uniformly required to provide information as to whether they are citizens and, if they are not, any determination denying benefits under this subsection shall not be made except upon a preponderance of the evidence.

SB672,31 Section 31 . 108.04 (18) (b) of the statutes is amended to read:

SB672,11,13 108.04 (18) (b) Any amendment of s. 26 USC 3304 (a) (14) of the federal unemployment tax act specifying conditions other than as stated in par. (a) for denial of benefits based on services performed by aliens, or changing the effective date for required implementation of par. (a) or such other conditions, which that is a condition of approval of this chapter for full tax credit against the tax imposed by the federal unemployment tax act, shall be applicable to this subsection.

SB672,32 Section 32 . 108.07 (5) (intro.) of the statutes is amended to read:

SB672,11,20 108.07 (5) (intro.) Except as provided in sub. (7), whenever benefits which that would otherwise be chargeable to the fund's balancing account are paid based on wages paid by an employer that is not subject to the contribution requirements of ss. 108.17 and 108.18, and the benefits are so chargeable under sub. (3) or s. 108.04 (1) (f) or, (5), or (5g) or 108.14 (8n) (e), or under s. 108.16 (6m) (e) for benefits specified in s. 108.16 (3) (b), the department shall charge the benefits as follows:

SB672,33 Section 33 . 108.07 (5) (a) of the statutes is amended to read:

SB672,11,25 108.07 (5) (a) If no employer from which the claimant has base period wages is subject to the contribution requirements of ss. 108.17 and 108.18, the benefits shall be charged to the administrative account and paid from the appropriation under s. 20.445 (1) (gd) (wd).

SB672,34 Section 34 . 108.07 (5) (c) of the statutes is amended to read:

SB672,12,9 108.07 (5) (c) If 2 or more employers from which the claimant has base period wages are not subject to the contribution requirements of ss. 108.17 and 108.18, and one or more employers from which the claimant has base period wages are subject to the contribution requirements of ss. 108.17 and 108.18, that percentage of the employee's benefits which would otherwise be chargeable to the fund's balancing account under sub. (3) or s. 108.04 (1) (f) or, (5), or (5g), or under s. 108.16 (6m) (e) for benefits specified in s. 108.16 (3) (b), shall be charged to the administrative account and paid from the appropriation under s. 20.445 (1) (gd) (wd).

SB672,35 Section 35 . 108.07 (6) of the statutes is amended to read:

SB672,12,15 108.07 (6) The department may initially charge benefits otherwise chargeable to the administrative account payable from the appropriation under s. 20.445 (1) (wd) as provided under this section to the fund's balancing account, and periodically reimburse the charges to the balancing account from the administrative account appropriation under s. 20.445 (1) (wd).

SB672,36 Section 36 . 108.07 (7) of the statutes is amended to read:

SB672,12,21 108.07 (7) Whenever benefits are chargeable under sub. (1) or (2) based on federal employment, the department shall charge the benefits to the federal government, except that, if the federal government refuses to reimburse the benefits to the department, the department shall charge the benefits to the administrative account and pay them from the appropriation under s. 20.445 (1) (wd).

SB672,37 Section 37 . 108.09 (5) (b) of the statutes is amended to read:

SB672,13,6 108.09 (5) (b) All testimony at any hearing under this section shall be recorded by electronic means, but need not be transcribed unless either of the parties requests a transcript before expiration of that party's right to further appeal under this section and pays a fee to the commission in advance, the amount of which shall be established by rule of the commission. When the commission provides a transcript to one of the parties upon request, the commission shall also provide a copy of the transcript to all other parties free of charge. The transcript fee collected shall be paid to the administrative account credited to the appropriation account under s. 20.427 (1) (g).

SB672,38 Section 38 . 108.10 (intro.) of the statutes is amended to read:

SB672,13,12 108.10 Settlement of issues other than benefit claims. (intro.) Except as provided in s. 108.245 (3), in connection with any issue arising under this chapter as to the status or liability of an employing unit in this state, for which no review is provided under s. 108.09, 108.095, or 108.227 (5) and whether or not a penalty is provided in s. 108.24, the following procedure shall apply:

SB672,39 Section 39 . 108.13 (4) (a) 2. of the statutes is amended to read:

SB672,13,15 108.13 (4) (a) 2. “Legal process" has the meaning given under 42 USC 662 (e) 659 (i) (5).

SB672,40 Section 40 . 108.14 (2m) of the statutes is amended to read:

SB672,14,12 108.14 (2m) In the discharge of their duties under this chapter an appeal tribunal, commissioner, or other authorized representative of the department or commission may administer oaths to persons appearing before them, take depositions, certify to official acts, and by subpoenas, served in the manner in which circuit court subpoenas are served, compel attendance of witnesses and the production of books, papers, documents, and records necessary or convenient to be used by them in connection with any investigation, hearing, or other proceeding under this chapter. A party's attorney of record may issue a subpoena to compel the attendance of a witness or the production of evidence. A subpoena issued by an attorney must be in substantially the same form as provided in s. 805.07 (4) and must be served in the manner provided in s. 805.07 (5). The attorney shall, at the time of issuance, send a copy of the subpoena to the appeal tribunal or other representative of the department responsible for conducting the proceeding. However, in any investigation, hearing, or other proceeding involving the administration of oaths or the use of subpoenas under this subsection due notice shall be given to any interested party involved, who shall be given an opportunity to appear and be heard at any such proceeding and to examine witnesses and otherwise participate therein. Witness fees and travel expenses involved in proceedings under this chapter may be allowed by the appeal tribunal or representative of the department at rates specified by department rules, and shall be paid from the administrative account appropriation under s. 20.445 (1) (n).