SB899: Bill Text

2021 Senate BILL 899

February 1, 2022 - Introduced by Committee on Labor and Regulatory Reform. Referred to Committee on Labor and Regulatory Reform.

SB899,2,3 An Act to repeal 20.445 (1) (gg), 20.445 (1) (gm), 108.02 (1), 108.14 (7) (c) and 108.14 (23) (d); to renumber and amend 20.445 (1) (gc), 20.445 (1) (gd), 20.445 (1) (gh), 108.14 (12) (e), 108.14 (18), 108.19 (1), 108.19 (1m), 108.19 (1n), 108.19 (1p), 108.19 (1q), 108.19 (1s), 108.19 (2), 108.19 (2m) and 108.19 (4); to consolidate, renumber and amend 108.14 (12) (a) to (d), 108.161 (1) and (1m) and 108.161 (5) and (6); to amend 20.445 (1) (n), 20.445 (1) (nb), 20.445 (1) (nd), 20.445 (1) (ne), 20.445 (1) (u), 20.445 (1) (v), 25.17 (1) (xe), 25.17 (1) (xf), 103.05 (5) (d), 108.04 (11) (f), 108.07 (5) (am) (intro.), 108.07 (5) (am) 1., 108.07 (5) (am) 3., 108.07 (6), 108.09 (5) (b), 108.14 (2m), 108.14 (3m), 108.14 (16), 108.16 (5) (c), 108.16 (6) (k), 108.16 (6) (m), 108.16 (8) (f), 108.161 (title), 108.161 (2), 108.161 (3), 108.161 (3e), 108.161 (4), 108.161 (7), 108.161 (8), 108.161 (9), 108.162 (7), 108.17 (2m), 108.17 (3), 108.17 (3m), 108.18 (7) (a) 1., 108.18 (7) (h), 108.19 (1e) (a), 108.19 (1e) (d), 108.19 (1f) (a), 108.19 (1f) (c), 108.22 (1) (am) and 108.22 (1m); to repeal and recreate 108.19 (title) and 108.20; and to create 20.427 (1) (g), 108.19 (1) (d), 108.19 (1e) (cm) and 108.19 (1m) (e) of the statutes; relating to: various changes to the unemployment insurance law and making an appropriation.

Analysis by the Legislative Reference Bureau

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:

Segregated fund

The 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.

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to a) reorganize, clarify, and update provisions relating to the financing of the UI law; and b) address numerous out-of-date or erroneous cross-references in the UI law, including all of the following: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. Deleting obsolete references to state laws.

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

5. 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.

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

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:

SB899,1 Section 1 . 20.427 (1) (g) of the statutes is created to read:

SB899,3,5 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.

SB899,2 Section 2 . 20.445 (1) (gc) of the statutes is renumbered 20.445 (1) (wc) and amended to read:

SB899,3,10 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.

SB899,3 Section 3 . 20.445 (1) (gd) of the statutes is renumbered 20.445 (1) (wd) and amended to read:

SB899,4,10 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), 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.

SB899,4 Section 4 . 20.445 (1) (gg) of the statutes is repealed.

SB899,5 Section 5 . 20.445 (1) (gh) of the statutes is renumbered 20.445 (1) (wh) and amended to read:

SB899,4,19 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).

SB899,6 Section 6 . 20.445 (1) (gm) of the statutes is repealed.

SB899,7 Section 7 . 20.445 (1) (n) of the statutes is amended to read:

SB899,5,18 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.

SB899,8 Section 8 . 20.445 (1) (nb) of the statutes is amended to read:

SB899,6,3 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).

SB899,9 Section 9 . 20.445 (1) (nd) of the statutes is amended to read:

SB899,6,16 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.

SB899,10 Section 10 . 20.445 (1) (ne) of the statutes is amended to read:

SB899,7,2 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.

SB899,11 Section 11 . 20.445 (1) (u) of the statutes is amended to read:

SB899,7,7 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).

SB899,12 Section 12 . 20.445 (1) (v) of the statutes is amended to read:

SB899,7,12 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).

SB899,13 Section 13 . 25.17 (1) (xe) of the statutes is amended to read:

SB899,7,14 25.17 (1) (xe) Unemployment interest payment fund (s. 108.19 (1q) 108.20 (3));

SB899,14 Section 14 . 25.17 (1) (xf) of the statutes is amended to read:

SB899,7,16 25.17 (1) (xf) Unemployment program integrity fund (s. 108.19 (1s) 108.20 (2));

SB899,15 Section 15 . 103.05 (5) (d) of the statutes is amended to read:

SB899,7,19 103.05 (5) (d) The department shall deposit all moneys received under this subsection in the appropriation account under s. 20.445 (1) (gd) (wd).

SB899,16 Section 16 . 108.02 (1) of the statutes is repealed.

SB899,17 Section 17 . 108.04 (11) (f) of the statutes is amended to read:

SB899,7,24 108.04 (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).

SB899,18 Section 18 . 108.07 (5) (am) (intro.) of the statutes is amended to read:

SB899,8,7 108.07 (5) (am) (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:

SB899,19 Section 19 . 108.07 (5) (am) 1. of the statutes is amended to read:

SB899,8,12 108.07 (5) (am) 1. 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).

SB899,20 Section 20 . 108.07 (5) (am) 3. of the statutes is amended to read:

SB899,8,21 108.07 (5) (am) 3. 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).

SB899,21 Section 21 . 108.07 (6) of the statutes is amended to read:

SB899,9,2 108.07 (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).

SB899,22 Section 22 . 108.09 (5) (b) of the statutes is amended to read:

SB899,9,12 108.09 (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).

SB899,23 Section 23 . 108.14 (2m) of the statutes is amended to read:

SB899,9,25 108.14 (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).

SB899,24 Section 24 . 108.14 (3m) of the statutes is amended to read:

SB899,10,21 108.14 (3m) In any court action to enforce this chapter the department, the commission, and the state may be represented by any licensed attorney who is an employee of the department or the commission and is designated by either of them for this purpose or at the request of either of them by the department of justice. If the governor designates special counsel to defend, in behalf of the state, the validity of this chapter or of any provision of Title IX of the social security act 42 USC 1101 to 1111, the expenses and compensation of the special counsel and of any experts employed by the department in connection with that proceeding may be charged to the administrative account appropriation under s. 20.445 (1) (wd). If the compensation is being determined on a contingent fee basis, the contract is subject to s. 20.9305.

SB899,25 Section 25 . 108.14 (7) (c) of the statutes is repealed.

SB899,26 Section 26 . 108.14 (12) (a) to (d) of the statutes are consolidated, renumbered 108.14 (12) (am) and amended to read:

SB899,12,2 108.14 (12) (am) Consistently with the provisions of pars. (8) and (9) of section 303 (a) of Title III of the federal social security act, 42 USC 503 (a) (8) and (9), the department shall expend all moneys received in the federal administrative financing account from any federal agency under said Title III shall be expended 42 USC ch. 7 subch. III solely for the purposes and in the amounts found necessary by said that agency for the proper and efficient administration of this chapter. (b) Consistently with said provisions of said Title III, any The department shall replace, within a reasonable time, any such moneys, that were received prior to before July 1, 1941, and remaining remained unencumbered on said that date, or that were received on or after said that date, which, because of any action or contingency, have been if the moneys are lost or have been expended for purposes other than, or in amounts in excess of, those found necessary by said the federal agency for the proper administration of this chapter, shall be replaced within a reasonable time. This paragraph is the declared policy of this state, as enunciated by the 1941 legislature, and shall be implemented as further provided in this subsection. (c). If it is believed that any amount of money thus received has been thus is lost or improperly expended, the department, on its own motion or on notice from said the federal agency, shall promptly investigate and determine the matter and shall, depending on the nature of its determination, take such steps as it may deem considers necessary to protect the interests of the state. (d) If it is finally determined that moneys thus received have been thus lost or improperly expended, then the department shall either make the necessary replacement from those moneys in the administrative account specified in s. 108.20 (2m) the appropriation under s. 20.445 (1) (wd) or shall submit, at the next budget hearings conducted by the governor and at the budget hearings conducted by the next legislature convened in regular session, a request that the necessary replacement be made by an appropriation from the general fund.

SB899,27 Section 27 . 108.14 (12) (e) of the statutes is renumbered 108.14 (12) (bm) and amended to read:

SB899,12,8 108.14 (12) (bm) This subsection shall not be construed to relieve this state of any obligation existing prior to its enactment before July 1, 1941, with respect to moneys received prior to before July 1, 1941, pursuant to said Title III under 42 USC ch. 7 subch. III.

SB899,28 Section 28 . 108.14 (16) of the statutes is amended to read:

SB899,12,18 108.14 (16) The department shall have duplicated or printed, and shall distribute without charge, such employment security any reports, studies and, forms, records, decisions, regulations, rules, or other materials, including the text of this chapter and, the handbook under sub. (23), and other instructional or explanatory pamphlets for employers or workers, as that it deems necessary for public information or for the proper administration of this chapter ; but the. The department may collect a reasonable charge, which shall be credited to the administrative appropriation account under s. 20.445 (1) (wd), for any such item the cost of which is not fully covered by federal administrative grants.

SB899,29 Section 29 . 108.14 (18) of the statutes is renumbered 108.19 (1e) (e) and amended to read:

SB899,12,25 108.19 (1e) (e) No later than the end of the month following each quarter in which the department expends moneys derived from assessments levied under s. 108.19 (1e) this subsection, the department shall submit a report to the council on unemployment insurance describing the use of the moneys expended and the status at the end of the quarter of any project for which moneys were expended.

SB899,30 Section 30 . 108.14 (23) (d) of the statutes is repealed.

SB899,31 Section 31 . 108.16 (5) (c) of the statutes is amended to read:

SB899,13,9 108.16 (5) (c) While the state has an account in the “Unemployment Trust Fund",” public deposit insurance charges on the fund's balances held in banks, savings banks, savings and loan associations, and credit unions in this state, the premiums on surety bonds required of the fund's treasurer under this section, and any other expense of administration otherwise payable from the fund's interest earnings, shall be paid from the administrative account appropriation under s. 20.445 (1) (n) or (ne).

SB899,32 Section 32 . 108.16 (6) (k) of the statutes is amended to read:

SB899,13,12 108.16 (6) (k) All payments to the fund from the administrative account as authorized under s. 108.20 (2m) appropriation under s. 20.445 (1) (wd).

SB899,33 Section 33 . 108.16 (6) (m) of the statutes is amended to read:

SB899,13,15 108.16 (6) (m) Any amounts transferred to the balancing account from the unemployment interest payment fund under s. 108.19 (1m) (f).

SB899,34 Section 34 . 108.16 (8) (f) of the statutes is amended to read:

SB899,13,25 108.16 (8) (f) The successor shall take over and continue the transferor's account, including its positive or negative balance and all other aspects of its experience under this chapter in proportion to the payroll assignable to the transferred business and the liability of the successor shall be proportioned to the extent of the transferred business. The transferor and the successor shall be jointly and severally liable for any amounts owed by the transferor to the fund and to the administrative account under this chapter at the time of the transfer, but a successor under par. (c) is not liable for the debts of the transferor except in the case of fraud or malfeasance.

SB899,35 Section 35. 108.161 (title) of the statutes is amended to read:

SB899,14,3 108.161 (title) Federal administrative financing account; Reed Act distributions.