SB914: Bill Text

LRB-5375/1

MED&EAW:cjs

2021 - 2022 LEGISLATURE

2021 Senate BILL 914

February 1, 2022 - Introduced by Senators Roth, Ballweg, Feyen and Bernier, cosponsored by Representatives Petryk, Penterman, Armstrong, Born, Dittrich, Edming, Knodl, Kuglitsch, Loudenbeck, Moses, Mursau, Petersen, Thiesfeldt, Wichgers, Wittke and Duchow. Referred to Committee on Economic and Workforce Development.

SB914,2,6 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:

SB914,1 Section 1 . 15.223 (2) of the statutes is created to read:

SB914,5,3 15.223 (2) Division of reemployment assistance. There is created in the department of workforce development a division of reemployment assistance.

SB914,2 Section 2 . 20.445 (1) (aL) of the statutes is amended to read:

SB914,5,12 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.

SB914,3 Section 3 . 20.445 (1) (gd) of the statutes is amended to read:

SB914,6,11 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.

SB914,4 Section 4 . 20.445 (1) (nd) of the statutes is amended to read:

SB914,6,24 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.

SB914,5 Section 5 . 40.02 (22) (b) 3. of the statutes is amended to read:

SB914,7,2 40.02 (22) (b) 3. Unemployment insurance or reemployment assistance benefits.

SB914,6 Section 6 . 40.65 (5) (b) 2. of the statutes is amended to read:

SB914,7,5 40.65 (5) (b) 2. Any unemployment insurance or reemployment assistance benefit payable to the participant because of his or her work record.

SB914,7 Section 7 . 49.147 (3) (ac) 2. of the statutes is amended to read:

SB914,7,8 49.147 (3) (ac) 2. State and federal unemployment reemployment assistance contributions or federal unemployment taxes.

SB914,8 Section 8 . 49.163 (3) (a) 3. c. of the statutes is amended to read:

SB914,7,11 49.163 (3) (a) 3. c. State reemployment assistance contributions and federal unemployment insurance contributions or taxes, if any.

SB914,9 Section 9 . 71.67 (7) (title) of the statutes is amended to read:

SB914,7,14 71.67 (7) (title) Withholding from unemployment compensation insurance reemployment assistance.

SB914,10 Section 10 . 105.01 (1) (b) 1. of the statutes is amended to read:

SB914,7,21 105.01 (1) (b) 1. The person employing the individuals in addition to wages or salaries pays federal social security taxes, state reemployment assistance contributions, and federal unemployment contributions or taxes, carries worker's compensation insurance as required by state law, and maintains liability insurance covering the acts of its employees while rendering services to, for or under the direction of a 3rd person; and

SB914,11 Section 11 . 105.115 (2) (b) of the statutes is amended to read:

SB914,8,5 105.115 (2) (b) A statement of the employment status of the home care worker, specifically, whether the home care worker is an employee of the home care placement agency or of the home care consumer or is an independent contractor and a statement identifying which party is responsible for paying the wages or salary of the home care worker, paying federal social security taxes and state reemployment assistance contributions and federal unemployment contributions or taxes with respect to the home care worker, and procuring worker's compensation or liability insurance covering injury to the home care worker.

SB914,12 Section 12 . 105.115 (2) (c) of the statutes is amended to read:

SB914,8,15 105.115 (2) (c) A statement that, notwithstanding the employment status of the home care worker specified in the notice, the home care consumer may be determined to be the employer of the home care worker for purposes of certain state and federal labor laws and that, if that is the case, the home care consumer may be held responsible for paying the wages or salary of the home care worker, paying federal social security taxes and state reemployment assistance contributions and federal unemployment contributions or taxes with respect to the home care worker, procuring worker's compensation or liability insurance covering injury to the home care worker, and complying with various other state and federal labor laws.

SB914,13 Section 13 . 105.115 (3) (a) 1. of the statutes is amended to read:

SB914,8,21 105.115 (3) (a) 1. A statement identifying which party is responsible for paying the wages or salary of the home care worker, paying federal social security taxes and state reemployment assistance contributions and federal unemployment contributions or taxes with respect to the home care worker, and procuring worker's compensation or liability insurance covering injury to the home care worker.

SB914,14 Section 14 . 105.115 (4) (b) 1. of the statutes is amended to read:

SB914,9,8 105.115 (4) (b) 1. If the department finds that a home care placement agency has failed to provide a home care consumer with the notice required under sub. (2) and that the home care consumer is liable for the payment of federal social security taxes or state reemployment assistance contributions or federal unemployment contributions or taxes with respect to the home care worker, for the provision of worker's compensation or liability insurance covering injury to the home care worker, for the payment of any fine or penalty imposed on the home care consumer for noncompliance with any state or federal labor law with respect to the home care worker, or for any injury to the home care worker, the department may recover from the home care placement agency, on behalf of the home care consumer, an amount equal to the total cost of those liabilities.

SB914,15 Section 15 . 105.115 (4) (b) 3. of the statutes is amended to read:

SB914,9,22 105.115 (4) (b) 3. In the case of a home care consumer who commences an action in circuit court under par. (a), if the circuit court finds that the home care placement agency has failed to provide the home care consumer with the notice required under sub. (2) and that the home care consumer is liable for the payment of federal social security taxes or state reemployment assistance contributions or federal unemployment contributions or taxes with respect to the home care worker, for the provision of worker's compensation or liability insurance covering injury to the home care worker, for the payment of any fine or penalty imposed on the home care consumer for noncompliance with any state or federal labor law with respect to the home care worker, or for any injury to the home care worker, the court may order the home care placement agency to pay to the home care consumer an amount equal to the total cost of those liabilities, together with costs under ch. 814 and, notwithstanding s. 814.04 (1), reasonable attorney fees.

SB914,16 Section 16 . 106.11 of the statutes is amended to read:

SB914,9,25 106.11 Workforce investment programs. The department shall cooperate with the federal government in carrying out the purposes of the federal Workforce Investment Act of 1998, 29 USC 2801 to 2945 Innovation and Opportunity Act of 2014, 29 USC 3101 to 3361. In administering the programs authorized by that act the department shall, in cooperation with other state agencies, with the council on workforce investment established under 29 USC 3111, and with local workforce development boards established under 29 USC 2832 3122, establish a statewide workforce investment system to meet the employment, training, and educational needs of persons in this state. If a local workforce development board anticipates that there may be a business closing or mass layoff under s. 109.07 in the area served by that board, the board may prepare a list of resources available in that area that provide career planning, job search, job skills training, and other support services for affected employees, as defined in s. 109.07 (1) (a), including contact information for those resources, for distribution to those employees under s. 109.07 (1m) (a).

SB914,17 Section 17 . 106.113 of the statutes is created to read: