AB883: Bill Text

LRB-4768/1

MED&EAW:cjs

2021 - 2022 LEGISLATURE

2021 Assembly BILL 883

January 21, 2022 - Introduced by Representatives Petryk, Penterman, Armstrong, Born, Dittrich, Duchow, Edming, Knodl, Kuglitsch, Loudenbeck, Moses, Mursau, Petersen, Thiesfeldt, Tittl, Wichgers and Wittke, cosponsored by Senators Roth, Ballweg, Bernier and Feyen. Referred to Committee on Labor and Integrated Employment.

AB883,2,6 An Act to renumber and amend 108.04 (2) (a) 4., 108.04 (15) (a) 2., 108.05 (3) (a) and 108.13 (4) (a) 4.; to consolidate, renumber and amend 108.04 (15) (a) (intro.) and 1.; to amend 20.445 (1) (aL), 20.445 (1) (gd), 20.445 (1) (nd), 40.02 (22) (b) 3., 40.65 (5) (b) 2., 49.147 (3) (ac) 2., 49.163 (3) (a) 3. c., 71.67 (7) (title), 105.01 (1) (b) 1., 105.115 (2) (b), 105.115 (2) (c), 105.115 (3) (a) 1., 105.115 (4) (b) 1., 105.115 (4) (b) 3., 106.11, 106.13 (2), 106.38 (3) (c) 3., 108.04 (2) (a) 3., 108.04 (12) (b), 108.133 (2) (a) (intro.), 108.133 (2) (am), 108.14 (1), 108.141 (1) (b) 3., 108.142 (1) (h) 3., 108.19 (1m), 111.39 (4) (c), 230.43 (4), 230.85 (3) (d) and 779.01 (2) (am); to repeal and recreate chapter 108 (title); and to create 15.223 (2), 106.113, 106.28, 108.01 (2m), 108.013, 108.02 (21r), 108.04 (2) (a) 4. c., 108.04 (2) (a) 5., 108.04 (15) (a) 2. b., 108.04 (15) (am), (an) and (ao), 108.05 (3) (a) 3., 108.14 (8o) and 108.14 (30) of the statutes; relating to: various changes to the unemployment insurance law, a grant program for hiring qualified long-term unemployment recipients, allocation of federal American Rescue Plan Act of 2021 funding for certain purposes, the state plan under the federal Workforce Innovation and Opportunity Act of 2014, federal Reemployment Services and Eligibility Assessment grants, employment outcome data reporting, extending the time limit for emergency rule procedures, providing an exemption from emergency rule procedures, and granting rule-making authority.

Analysis by the Legislative Reference Bureau

Unemployment insurance

This bill makes various changes in the unemployment insurance (UI) law, which is administered by the Department of Workforce Development. Significant changes include all of the following:

Program name change

The bill changes references in the statutes to “unemployment insurance” to “reemployment assistance” and requires the program and its benefits to be known as reemployment assistance. The bill also requires DWD to have a division known as the Division of Reemployment Assistance and requires the reemployment assistance law to be administered by that division.

General qualifying requirements

Under current law, a claimant for UI benefits is generally required to 1) register for work, 2) be able to work and available for work, and 3) conduct a work search for each week in order to remain eligible. A claimant is required to conduct at least four work search actions each week, and DWD may require, by rule, that an individual conduct more than four work search actions per week. Finally, if a claimant is claiming benefits for a week other than an initial week, the claimant must provide information or job application materials that are requested by DWD and participate in a public employment office workshop or training program or in similar reemployment services required by DWD.

This bill does the following:

1. Requires, for the third and subsequent weeks of a claimant's benefit year, that at least two of the required weekly work search actions be direct contacts with potential employers.

2. Requires a claimant who resides in this state, for each week other than an initial week, to submit and keep posted on the DWD's job center website a current resume.

3. Requires, when a claimant is claiming benefits with less than three weeks of benefits left, that the claimant complete a reemployment counseling session.

Additionally, current law allows DWD to use information or job application materials described above to assess a claimant's efforts, skills, and ability to find or obtain work and to develop a list of potential opportunities for a claimant to obtain suitable work. However, current law provides that a claimant who otherwise satisfies the required weekly work search requirement is not required to apply for any specific positions on the list of potential opportunities in order to satisfy the work search requirement. The bill requires, instead of allows, DWD to provide this assistance. The bill also repeals the language in current law providing that a claimant who otherwise satisfies the weekly work search requirement is not required to apply for specific positions provided by DWD and requires DWD to provide each claimant with at least four potential opportunities each week, one or more of which may be opportunities with a temporary help company.

Finally, current law allows DWD to require a claimant to participate in a public employment office workshop or training program. This bill provides that DWD must require a claimant to participate in a public employment office workshop or training program if the claimant is likely to exhaust regular UI benefits. DWD may also require other claimants to participate in a public employment office workshop or training program, but must prioritize claimants more likely to have difficulty obtaining reemployment.

Drug testing

Current state law requires DWD to establish a program that is consistent with federal law to test certain claimants who apply for UI benefits for the presence of controlled substances. A claimant who tests positive for a controlled substance for which the claimant does not have a prescription is ineligible for UI benefits until certain requalification criteria are satisfied or unless he or she enrolls in a substance abuse treatment program and undergoes a job skills assessment, and a claimant who declines to submit to a test is simply ineligible for benefits until he or she requalifies. Claimants who are required to undergo drug testing include individuals for whom suitable work is only available in occupations for which drug testing is regularly conducted in this state. However, current law provides that these provisions do not apply until DWD promulgates rules to implement the requirements and those rules take effect, including rules identifying occupations for which drug testing is regularly conducted in this state.

This bill requires DWD to immediately promulgate the required rules.

Reemployment Services and Eligibility Assessment grants

Under federal law, the United States Department of Labor (USDOL) operates the Reemployment Services and Eligibility Assessment (RESEA) program, whereby grants are awarded to states to provide reemployment services to claimants. Participation in the RESEA program is voluntary and requires that a state submit a state plan to USDOL that outlines how the state intends to conduct a program of reemployment services and eligibility assessments.

This bill requires that DWD act to continue to participate in the RESEA program and provide RESEA services to all UI claimants likely to exhaust regular UI benefits. The bill further requires DWD, until December 31, 2024, to provide certain RESEA services to all UI claimants and requires the governor to allocate moneys available under the federal American Rescue Plan Act of 2021 to provide these services.

Wage threshold for receipt of benefits

Under current law, if a claimant for UI earns more than $30 in a given week, the partial benefits formula reduces the claimant's weekly UI benefit payment by a certain percentage of the wages earned over $30. Under current law, if a claimant receives wages totaling more than $500 in a given week, the claimant is generally ineligible to receive any benefits. This bill changes the partial benefits formula so that the UI benefit payment is not reduced unless a claimant earns more than $30 or 40 percent of the claimant's weekly benefit rate in a given week, whichever amount is greater. However, the bill does not affect the $500 cap on wages for receipt of benefits.

Other changes

Grant program for hiring long-term unemployment recipients

The bill directs the governor to allocate sufficient moneys of the moneys received from the federal government under the American Rescue Plan Act of 2021 for costs associated with a grant program to provide payments to employers that hire qualified long-term unemployment benefit recipients who became unemployed due to the COVID-19 pandemic. Under the program, an employer may receive up to two payments of up to $1,000 each for each qualified long-term unemployment recipient the employer hires as compensation for wages, training, benefits, and other employment costs incurred by the employer.

WIOA State Plan

Under the federal Workforce Innovation and Opportunity Act of 2014 (WIOA), federal funds are allocated to the state and, in turn, to local workforce development areas designated by the governor to provide employment and training activities for job seekers and workers. The WIOA repealed a prior law known as the federal Workforce Investment Act of 1998, which contained many similar provisions. To receive funding under the WIOA, the state must undertake a number of activities, including submitting a state plan to the federal government. A plan must outline a four-year strategy for the state's workforce development system. This bill requires the combined state plan submitted by the state to include programs authorized under state unemployment compensation laws, which is one of the 11 specific federal programs listed in the WIOA that states may include in their plans to assist in workforce development.

The bill also updates references to the United States Code regarding the WIOA.

Data reporting

The bill requires DWD, using quarterly wage data filed by employers with DWD, to semiannually compile data and prepare a report to provide information on and analysis of the employment outcomes of claimants after receiving UI benefits. Each claimant's wage data must be used for 12 quarters following the claimant's first of benefits.

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:

AB883,1 Section 1 . 15.223 (2) of the statutes is created to read:

AB883,5,3 15.223 (2) Division of reemployment assistance. There is created in the department of workforce development a division of reemployment assistance.

AB883,2 Section 2 . 20.445 (1) (aL) of the statutes is amended to read:

AB883,5,12 20.445 (1) (aL) Unemployment insurance Reemployment assistance administration; controlled substances testing and substance abuse treatment. Biennially, the amounts in the schedule for conducting screenings of applicants, testing applicants for controlled substances, the provision of substance abuse treatment to applicants and claimants, and related expenses under s. 108.133. Notwithstanding s. 20.001 (3) (b), the unencumbered balance on June 30 of each odd-numbered year shall be transferred to the unemployment reemployment assistance program integrity fund.

AB883,3 Section 3 . 20.445 (1) (gd) of the statutes is amended to read:

AB883,6,11 20.445 (1) (gd) Unemployment Reemployment assistance; interest and penalty payments. 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 all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), 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 reemployment assistance program and federal or state unemployment insurance reemployment assistance 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 reemployment assistance 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 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.

AB883,4 Section 4 . 20.445 (1) (nd) of the statutes is amended to read:

AB883,6,24 20.445 (1) (nd) Unemployment Reemployment assistance administration; apprenticeship and other employment services. From the moneys received from the federal government under section 903 (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 reemployment assistance 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.

AB883,5 Section 5 . 40.02 (22) (b) 3. of the statutes is amended to read:

AB883,7,2 40.02 (22) (b) 3. Unemployment insurance or reemployment assistance benefits.

AB883,6 Section 6 . 40.65 (5) (b) 2. of the statutes is amended to read:

AB883,7,5 40.65 (5) (b) 2. Any unemployment insurance or reemployment assistance benefit payable to the participant because of his or her work record.