Amendment SE3 SSA1-SB1

Under current law, there are four income tax brackets for single individuals, certain fiduciaries, heads of households, and married persons, and the brackets are indexed for inflation. The rate of taxation under current law for the lowest bracket for single individuals, certain fiduciaries, heads of households, and married persons is 3.50 percent of taxable income. The rate for the second bracket is 4.40 percent. The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is 7.65 percent. Before bracket indexing, the four brackets for individuals, certain fiduciaries, and heads of households, to which the above rates apply, are as follows: 1) taxable income from $0 to $7,500; 2) taxable income exceeding $7,500 but not exceeding $15,000; 3) taxable income exceeding $15,000 but not exceeding $225,000; and 4) taxable income exceeding $225,000.

Child and dependent care tax credit

Under current law, an individual who is eligible to claim the federal child and dependent care tax credit may claim a state income tax credit equal to 50 percent of the amount the individual may claim as a federal income tax credit. However, the amount of employment-related expenses that an individual may claim to determine the amount of the federal credit is limited to $3,000 if the individual has only one qualifying dependent, and $6,000 if the individual has two or more qualifying dependents.

The bill increases the amount of the state credit that an individual may claim by increasing the employment-related expense limitation to $10,000 for one qualifying dependent and $20,000 for two or more qualifying dependents, and by allowing an individual to claim a state income tax credit equal to the full amount that the individual could claim for the federal child and dependent care credit determined using the individual's employment-related expenses.

Private school tuition deduction

Under current law, an individual, when computing income for income tax purposes, may deduct the tuition paid during the year to send his or her dependent child to private school. The maximum deduction is $4,000 for an elementary school pupil and $10,000 for a secondary school pupil.

This bill increases the maximum deduction to $5,070 for an elementary school pupil and $12,660 for a secondary school pupil. The bill also increases the amounts by the annual percentage change in the consumer price index for future tax years.

Reciprocal credentials

This bill creates a process for certain individuals who hold a license, certification, registration, or permit that was granted by another state to apply for and receive a reciprocal credential in this state. Under current law, an individual may not engage in certain professions or assume certain titles in this state unless the individual holds a credential issued by a department, examining board, or credentialing board with authority to oversee the profession or practice. Current law requires the Department of Safety and Professional Services, the Veterinary Examining Board, and any credentialing board attached to DSPS, with certain exceptions, to issue a reciprocal credential to a service member, former service member, or the spouse of a service member or former service member who resides in this state if certain conditions are met, including that the individual holds a license, certification, registration, or permit that was granted by a governmental authority in a jurisdiction outside this state that qualifies the individual to perform the acts authorized under an appropriate credential granted in this state and that the individual's certification, registration, or permit is in good standing with the governmental authorities in every jurisdiction outside this state that have granted the individual such a license, certification, registration, or permit.

The bill expands who may apply for reciprocal credentials to include all individuals and adds the further requirements that to receive a reciprocal credential in this state an individual may not have an arrest or conviction record; may not have any limitation, restriction, or other encumbrance on any credential issued by a governmental authority in another state that qualifies the individual to perform acts authorized under the appropriate reciprocal credential granted in this state; and may not be under investigation in another state related to any credential possessed by the individual that qualifies the individual to perform acts authorized under the appropriate reciprocal credential granted in this state. The bill does not allow individuals to receive a reciprocal credential from the Accounting Examining Board or the Real Estate Examining Board that would grant the holder of the credential a limited right to practice law in this state, unless the applicant is licensed to practice law in this state.

Investigations of conviction records by DSPS

Current law prohibits employment discrimination on the basis of a conviction record and prohibits DSPS and the credentialing boards attached to DSPS from discriminating against applicants for credentials on the basis of a conviction record. However, current law allows DSPS and the credentialing boards attached to DSPS to refuse, bar, or terminate a credential due to a prior arrest, conviction, or other offense if the circumstances of the arrest, conviction, or offense are substantially related to the circumstances of the licensed activity. The bill allows DSPS to complete its investigation as to whether the circumstances of an arrest, conviction, or other offense are substantially related to the circumstances of a credentialed activity without reviewing the specific circumstances of the arrest, conviction, or other offense if the arrest, conviction, or other offense is a certain violation of state or local law, including all of the following:

1. A first conviction for a violation of a law or local ordinance that prohibits driving or operating a motor vehicle while intoxicated or under the influence of alcohol, a controlled substance, or a controlled substance analog, or a combination of those, or of any drug that renders the person incapable of safely driving, if that first conviction occurred more than five years before the applicant applied for the credential.

2. A violation of a law or local ordinance that prohibits underage procurement, possession, or consumption of alcohol.

3. A minor, nonviolent ordinance violation, as determined by DSPS.

Further, the bill allows DSPS to accept, in lieu of completing its own investigation, a determination made by an applicant's employer or by a contracted entity on behalf of an applicant's employer that the applicant does not have an arrest, conviction, or other offense record or that the circumstances of an arrest, conviction, or other offense are not substantially related to the licensed activity. The bill requires that an applicant's employer, or a contracted entity on behalf of an applicant's employer, must attest that the determination was made to the best of the employer's or entity's knowledge and with a reasonable degree of certainty. Under the bill, DSPS must accept or reject such a determination within 30 days of receipt. Within the 30 days following receipt of a determination by an applicant's employer or a contracted entity on behalf of an applicant's employer that the applicant does not have an arrest, conviction, or other offense record, DSPS may review the determination and request additional information from the applicant before accepting or rejecting the determination. Finally, the bill provides that neither DSPS nor any credentialing board attached to DSPS may be subject to suit or found liable for damages resulting from acceptance of an employer's or entity's determination.

Prohibiting statutes and rules examinations for certain professions

The bill prohibits DSPS, the Board of Nursing, the Medical Examining Board, the Occupational Therapists Affiliated Credentialing Board, the Pharmacy Examining Board, and the Marriage and Family Therapy, Professional Counseling, and Social Work Examining Board from requiring an applicant to pass a statutes and rules examination as a condition of licensure or certification for all of the following professions:

1. Substance abuse counselors, clinical substance abuse counselors, and substance abuse counselors-in-training.

2. Advanced practice nurse prescribers.

3. Respiratory care practitioners.

4. Occupational therapists and occupational therapy assistants.

5. Pharmacists.

6. Professional counselors.

The bill allows DSPS and the examining and credentialing boards to require an applicant for a credential to practice any of the professions listed above to affirm that the applicant has read and understands the statutes and rules that apply to the applicant's practice.

Credential renewal periods

Under current law, a two-year renewal period applies to many health and business credentials administered by DSPS or a credentialing board. The renewal date for each two-year period is specified by statute. The bill revises each two-year renewal period in the health and business professions to four-year renewal periods and makes various changes related to continuing education requirements for these credentials.

Current law requires DSPS to grant a temporary state credential to a health care provider who is credentialed in good standing in another state, pending an application for a permanent credential. The provider must apply for the temporary credential within 30 days of first providing services in Wisconsin and attest that the person is in good standing under the out-of-state credential and has applied for a permanent credential. The health care provider's employer must notify DSPS within 10 days of the person first providing services in Wisconsin and attest that the provider's credential and good standing have been confirmed to a reasonable degree of certainty. An employer's notification and attestation are not required if the person is only providing telehealth services.

To be in good standing under a credential from another state, the provider must hold a valid, unexpired credential and must not be under investigation or have any active restrictions or limitations on the person's credential. While practicing in Wisconsin under the temporary credential, a health care provider is subject to all responsibilities and limitations in the applicable practice.

The bill expands this process from health care providers to also include persons classified in the business professions with credentials in good standing in another state or territory. The bill revises the terminology for all health care and business profession applicants from a “temporary” credential to a “preliminary” credential. If an individual with a valid, unexpired credential from another state or territory applies for a preliminary credential under the process described above, the individual may provide health care or business services for an employer, under the preliminary credential, while an application for a permanent credential is pending. While providing services under the preliminary credential, the person is subject to all responsibilities and limitations of the applicable state-issued credential.

The bill also adds the following health care professions that may apply for a preliminary credential, who are not included in current law: dental hygienists, expanded function dental auxiliaries, genetic counselors, radiographers, and naturopathic doctors.

Reciprocal credential information

Under current law, for health and business credentials administered by DSPS or a credentialing board, a specific reciprocal credential standard is typically specified for each credential, which establishes the eligibility criteria for issuing a reciprocal credential. A reciprocal credential is a credential issued to a person who already possesses a similar credential in another jurisdiction. Also known as licensure by endorsement, the process for granting a reciprocal credential typically allows an applicant who is already credentialed in another jurisdiction to receive a credential without having to provide all of the documentation or satisfy all of the criteria that would otherwise be required to be granted a credential. A commonly used standard specifies that a reciprocal credential may be granted if the other state's credentialing requirements are “substantially equivalent” to Wisconsin's credentialing requirements for the profession.

The bill requires DSPS to determine, for each health care provider credential, whether the profession's reciprocity standard requires an examination of the equivalence, comparability, or similarity of a prior issuing state's or territory's credentialing requirements. For each health care provider credential that DSPS determines applies this reciprocity standard, DSPS must review all other states' and territories' health care provider credentialing requirements, in consultation with the appropriate credentialing boards, to determine whether each other state's or territory's laws qualify for purposes of granting a reciprocal health care provider credential under state law.

DSPS must post the results of its review on its website and must update the review at least every four years.

Audiology and Speech-Language Pathology Interstate Compact

This bill ratifies and enters Wisconsin into the Audiology and Speech-Language Pathology Interstate Compact, which allows a speech-language pathologist or audiologist licensed in one member state to obtain a “compact privilege” to practice in a remote state without obtaining a license in that remote state.

PA Licensure Compact

This bill ratifies and enters Wisconsin into the PA Licensure Compact, which provides for the ability of a physician assistant to become eligible to practice in other compact states.

Social Work Licensure Compact

This bill ratifies and enters Wisconsin into the Social Work Licensure Compact, which provides for the ability of a social worker to become eligible to practice in other compact states.

Counseling Compact

This bill ratifies and enters Wisconsin into the Counseling Compact, which provides for the ability of a professional counselor to become eligible to practice in other compact states.

Decennial review of occupational licensure requirements

This bill establishes a decennial process for review of the state's occupational licensure requirements.

The bill creates the Occupational License Review Council. The council is created in DSPS and consists of the following members:

1. Four members appointed by the governor to serve at the pleasure of the governor.

2. Two members of the senate appointed by the senate majority leader.

3. Two members of the assembly appointed by the speaker of the assembly.

4. The secretary of safety and professional services or his or her designee, who serves as the council's chair. The secretary or designee is a nonvoting member, except that he or she may vote in the case of a tie.

The council must submit a report by December 31, 2024, to the governor, the chief of the Legislative Reference Bureau, and the legislature that includes the council's recommendations for the elimination of occupational licenses in this state, or the modification of laws and rules governing occupational licenses, and the reduction or elimination of occupational license–continuing and other education requirements. The council's recommendations for the elimination of occupational licenses must take into account a number of considerations, including any statement or analysis provided by the agency or board administering an occupational license and including an evaluation of whether the unregulated practice of the profession, occupation, or trade can clearly harm or endanger the health, safety, or welfare of the public.

Under the bill, the LRB must prepare legislation based on the council's recommendations, and the proposed legislation must be introduced without change and referred to the appropriate standing committee of each house. The legislature must take final action on the proposed legislation no later than June 30, 2025.

The bill provides that a new council convenes every 10 years to repeat the process described above.

Under the bill, for purposes of the council's functions, the term “occupational license” means any license, permit, certification, registration, or other approval granted by DSPS or a board under DSPS and any other license, permit, certification, registration, or approval granted to a person by this state in order that the person may engage in a profession, occupation, or trade or use one or more titles in association with his or her profession, occupation, or trade.

Reports on proposed legislation requiring occupational and business licenses

This bill requires the Department of Administration to prepare a report containing certain information on any bill that is introduced in the legislature that requires an individual to obtain a license in order to engage in a particular profession or occupation or that requires that a license be obtained in order for a particular type of business to be owned or operated. The LRB must submit to DOA any bill to which the requirement applies, and the report must be distributed before certain actions are taken on the bill in the legislature.

Provider Assistance for Licensing

The bill requires the Wisconsin Economic Development Corporation, no later than March 1, 2024, to request the Joint Committee on Finance to supplement an appropriation for child care to be used for the Provider Assistance for Licensing program (PAL). Under the bill, PAL is a program to assist unregulated providers of child care in becoming certified child care providers or licensed child care centers through methods including grant funding; waiver of licensure fees; and assistance with compliance with regulations, training and certification, and completing background checks.

Apprenticeship grants for technical college and tribal college students

This bill creates grant programs under which the Technical College System Board and Higher Educational Aids Board may award grants of up to $1,500 to technical college students and tribal college students, respectively, who have undertaken an apprenticeship program in conjunction with their course of instruction at the technical college or tribal college. These grants may be awarded only to pay for the students' actual materials expenses, such as the cost of tools, equipment, and clothing, associated with the apprenticeship program. Among the requirements for a student to be eligible for a grant, the student must be enrolled in the apprenticeship program in the semester in which the grant is made and in the following semester.

Commercial driver's license training grants

This bill requires the Department of Workforce Development to establish a commercial driver training grant program. Under the program, DWD provides grants to persons or other entities that provide training leading to an individual who resides in this state receiving a commercial driver's license (CDL) in this state. The training must, in order to qualify for a grant, satisfy entry-level driver training requirements established by the Federal Motor Carrier Safety Administration (FMCSA), including that the grant applicant be listed on the FMCSA's registry of approved training providers. The bill further requires that a grant applicant have a facility in this state that is listed in the registry, and that the training be provided at or through that facility. Grants under the bill may not exceed, for each individual trained, 50 percent of the costs of training the individual in the operation of commercial motor vehicles or $3,000, whichever is less. DWD may not award grants for applications to participate in the training program received after June 30, 2025.

Unemployment insurance; general qualifying requirements

Under current law, a claimant for unemployment insurance (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.

The 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. The 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.

Unemployment insurance; 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.

The bill requires DWD to immediately promulgate the required rules.

Unemployment insurance; 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.

The bill requires that DWD act to continue to participate in the RESEA program and requires DWD to provide certain RESEA services to all UI claimants.

Unemployment insurance; database comparisons

The bill requires DWD to perform a comparison of state and national databases that track death records, employment records, and prison records against recipients of UI benefits for the purposes of detecting fraud or erroneous payments. The bill requires DWD to perform the comparison on at least a weekly basis. The bill provides that DWD may also make such comparisons with other databases.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1-SSA1,1 Section 1. 13.0963 of the statutes is created to read:

SB1-SSA1,12,4 13.0963 Review of bills creating occupational licenses. (1) Definition. In subs. (2) and (3), “license” includes any permit, certificate, approval, registration, charter, or similar form of permission.

SB1-SSA1,13,5 (2) Report on bills creating occupational licenses. (a) If any bill that is introduced in either house of the legislature creates a requirement that an individual obtain a license in order to engage in a particular profession or occupation or a requirement that a license be obtained in order for a particular type of business to be owned or operated, the department of administration shall prepare and issue an occupational license report on the bill within 30 business days after it is introduced. The department shall request information from any individual or business that the department considers likely to be affected by the proposed licensure requirement and shall request a statement or analysis from the agency that would be required to administer the licensure requirement. Individuals, businesses, and agencies shall comply with requests by the department for information that is reasonably necessary for the department to prepare the report. To the greatest extent possible, reports under this section shall be based on the information obtained by the department from individuals, businesses, and agencies under this paragraph.

SB1-SSA1,13,9 (b) A bill that requires a report by the department of administration under this section shall have that requirement noted on its jacket when the jacket is prepared. When a bill that requires a report under this section is introduced, the legislative reference bureau shall submit a copy of the bill to the department of administration.

SB1-SSA1,13,16 (c) The report prepared under this section shall be printed as an appendix to the applicable bill and shall be distributed in the same manner as amendments. The report shall be distributed before any vote is taken on the bill by either house of the legislature if the bill is not referred to a standing committee, or before any public hearing is held before any standing committee or, if no public hearing is held, before any vote is taken by the committee. The department of administration shall also publish the report on its Internet site.

SB1-SSA1,13,18 (3) Findings to be contained in the report. The department of administration shall include all of the following in a report prepared under sub. (2):

SB1-SSA1,13,22 (a) An evaluation of whether the unregulated practice of the profession, occupation, or business can clearly harm or endanger the health, safety, or welfare of the public, and whether the potential for the harm is recognizable and not remote or speculative.

SB1-SSA1,13,24 (b) An evaluation of whether the public can reasonably be expected to benefit from the requirement for the license.

SB1-SSA1,14,2 (c) An evaluation of what the least restrictive regulation is that will effectively protect the public, as determined under sub. (4).