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AB1170,13,2522 (w) The plan does not impose any duties under the federal Employee
23Retirement Income Security Act of 1974, 29 USC 1001 to 1461, on an employer and
24does not expose any employer or the state, either as an employer or in the
25administration of the plan, to any potential liability under that act.
AB1170,14,2
1(x) The plan provides a process for making withdrawals from an employee's
2WisEARNS retirement account.
AB1170,14,73 (y) The plan sets forth the requirements that an employer that offers a qualified
4retirement plan described in par. (b) must meet in order to obtain an exemption from
5the requirement under par. (b) that the employer withhold and remit employee
6contributions to the plan through payroll deductions and a process for obtaining such
7an exemption.
AB1170,14,108 (z) The plan sets forth the contents and frequency of disclosures that the board
9must make to employers, eligible employees and other individuals participating in
10the plan. Those disclosures shall include all of the following:
AB1170,14,1211 1. A discussion of the benefits and risks associated with making contributions
12to a retirement savings account.
AB1170,14,1513 2. Instructions on the process for making contributions to a WisEARNS
14account, opting out of participation in the plan, and making withdrawals from a
15WisEARNS account.
AB1170,14,1616 3. Instructions on how to obtain additional information about the plan.
AB1170,14,2017 4. A notice advising that employees should contact a financial or investment
18adviser for financial or investment advice, that participating employers may not
19provide financial or investment advice, and that participating employers are not
20liable for financial or investment decisions made by an employee.
AB1170,14,2221 5. A notice advising that the plan is not an employer-sponsored retirement
22savings plan.
AB1170,15,223 6. A notice that a rate of interest or return on a WisEARNS retirement account,
24and the payment of principal, interest, or a return on such an account, are not

1guaranteed by the state and that the state may not be held liable for any loss incurred
2by any person as a result of participating in the plan.
AB1170,15,6 3(9) Construction. Nothing in this section guarantees any rate of interest or
4return on a WisEARNS retirement account or the payment of principal, interest, or
5a return on such an account. The state may not be held liable for any loss incurred
6by any person as a result of participating in the plan.
AB1170,15,9 7(10) Confidentiality. All personal and financial information pertaining to the
8owner or a beneficiary of a WisEARNS account is confidential and may not be
9disclosed except as follows:
AB1170,15,1110 (a) As necessary to administer the plan, the tax laws of this state, and the
11Internal Revenue Code.
AB1170,15,1212 (b) With the prior written consent of the subject of the information.
AB1170,15,15 13(11) Liability for private employers. No private employer is a fiduciary with
14respect to the plan. No private employer is liable for any of the following with respect
15to the plan or an eligible employee:
AB1170,15,1616 (a) An eligible employee's decision to participate in the plan.
AB1170,15,1817 (b) Investment decisions made by the board or an eligible employee who
18participates in the plan.
AB1170,15,2019 (c) The administration or investment performance of the plan, including any
20interest rate or other rate of return on any contribution or account balance.
AB1170,15,2121 (d) The plan design.
AB1170,15,2422 (e) An eligible employee's familiarity with and compliance with the applicable
23provisions of the Internal Revenue Code and U.S. department of treasury
24regulations related to individual retirement accounts.
AB1170,16,4
1(f) Any loss, failure to realize any gain, or other adverse consequences,
2including any adverse tax consequences or loss of favorable tax treatment, public
3assistance, or other benefits, incurred by any eligible employee as a result of
4participating in the plan.
AB1170,16,15 5(12) Liability of board and state. No cause of action of any nature may arise
6against and no civil liability may be imposed upon a member of the board for any act
7or omission in the performance of his or her powers and duties related to the plan,
8unless the individual asserting liability proves that the act or omission constitutes
9willful misconduct. No cause of action of any nature may arise against and no civil
10liability may be imposed upon the state or an employee of the state for any act or
11omission related to the powers and duties of the state or employee in the performance
12of any powers or duties related to the plan unless the individual asserting liability
13proves that the act or omission constitutes willful misconduct. No member of the
14board, the state, board or commission of the state, appointee, or employee of the state
15is liable for any of the following:
AB1170,16,1816 (a) An eligible employee's familiarity with and compliance with the applicable
17provisions of the Internal Revenue Code and U.S. department of treasury
18regulations related to individual retirement accounts.
AB1170,16,2019 (b) The interest rate or other rate of return, on an account balance or
20investment performance.
AB1170,16,2421 (c) Any loss, failure to realize any gain, or other adverse consequences,
22including any adverse tax consequences or loss of favorable tax treatment, public
23assistance, or other benefits, incurred by any eligible employee as a result of
24participating in the plan.
AB1170,16,2525 (d) The debts, contracts, and obligations of the plan or the board.
AB1170,17,4
1(13) Reports. (a) By October 15 of each year, the board shall submit a report
2of its activities to the governor and the appropriate standing committees of the
3legislature under s. 13.172 (3). The report shall include information on the
4performance of the plan and any recommended changes to the plan.
AB1170,17,75 (b) By January 1, 2028, the board shall submit a report of its activities to the
6governor and the appropriate standing committees of the legislature under s. 13.172
7(3).
AB1170,17,11 8(14) Standard of responsibility. Members of the board and any 3rd-party
9administrators of the plan shall discharge their duties as fiduciaries with respect to
10the trust fund under s. 25.52 for the interest of eligible employees who participate
11in the plan as follows:
AB1170,17,1412 (a) To administer assets of the trust fund solely for the purpose of providing
13benefits to eligible employees who are enrolled in the plan at a reasonable cost and
14not for any other purpose.
AB1170,17,1815 (b) To manage the money and property of the trust fund with the care, skill,
16prudence, and diligence under the circumstances then prevailing that a prudent
17person acting in a similar capacity, with the same resources, and familiar with like
18matters exercises in the conduct of an enterprise of a like character with like aims.
AB1170,17,21 19(15) Assistance. The office of the state treasurer shall provide the board with
20any assistance necessary to carry out this section, including staff, equipment, and
21office space.
AB1170,3 22Section 3 . 16.705 (9) of the statutes is amended to read:
AB1170,18,523 16.705 (9) The department shall maintain a list of persons that are or have
24been a party to a contract with the state under this subchapter or s. 14.69 who have
25violated a provision of this subchapter or a contract under this subchapter or s. 14.69.

1The parties on the list are ineligible for state contracts and no state contract may be
2awarded to a party on the ineligible list. The department may remove any party from
3the ineligible list if the department determines that the party's practices comply with
4this subchapter or s. 14.69 and provide adequate safeguards against future
5violations of this subchapter or s. 14.69 or contracts under this subchapter or s. 14.69.
AB1170,4 6Section 4 . 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
7the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF - See PDF for table PDF
AB1170,5 8Section 5 . 20.517 of the statutes is created to read:
AB1170,18,10 920.517 WisEARNS. There is appropriated to the WisEARNS board for the
10following programs:
AB1170,18,13 11(1) WisEARNS plan. (a) Establishment and administration of plan.
12Biennially, the amounts in the schedule to establish and administer the plan under
13s. 14.69.
AB1170,18,1614 (q) Board operating expenses; WisEARNS plan administration trust fund.
15From the WisEARNS plan administration trust fund, all moneys deposited in that
16fund under s. 14.69 (7) (b) for the operating expenses of the board.
AB1170,19,217 (r) Gifts and grants; WisEARNS plan administration trust fund. From the
18WisEARNS plan administration trust fund, all moneys received as contributions,

1gifts, grants, and bequests for that trust fund under s. 14.69 (6) (b) to carry out the
2purposes for which made and received.
AB1170,6 3Section 6. 20.923 (4) (c) 7. of the statutes is created to read:
AB1170,19,44 20.923 (4) (c) 7. State treasurer; WisEARNS board: executive director.
AB1170,7 5Section 7 . 25.52 of the statutes is created to read:
AB1170,19,9 625.52 WisEARNS plan administration trust fund. There is established a
7separate nonlapsible trust fund designated as the WisEARNS plan administration
8trust fund, to consist of all moneys deposited in that fund under s. 14.69 (6) (b) and
9(7) (b).
AB1170,8 10Section 8. 71.05 (6) (a) 15. of the statutes is amended to read:
AB1170,19,1611 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
12(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4s), (4w), (5e),
13(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
14limited liability company, or tax-option corporation that has added that amount to
15the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
16or 71.34 (1k) (g).
AB1170,9 17Section 9 . 71.07 (4s) of the statutes is created to read:
AB1170,19,1918 71.07 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this
19subsection:
AB1170,19,2120 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
21Internal Revenue Code, that files a claim under this subsection.
AB1170,19,2322 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
23Revenue Code.
AB1170,19,2524 3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
25Internal Revenue Code.
AB1170,20,4
1(b) Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
3amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
4or incurred by the claimant during the taxable year.
AB1170,20,65 (c) Limitations. 1. The credit claimed under this subsection in a taxable year
6may not exceed the greater of the following:
AB1170,20,77 a. $500.
AB1170,20,108 b. The lesser of $250 for each employee of the claimant who is not a highly
9compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
10or $5,000.
AB1170,20,1211 2. The credit under this subsection may be claimed only for 3 consecutive
12taxable years beginning with the first credit year.
AB1170,20,14133. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
14to the credit under this subsection.
AB1170,20,1615 4. No credit may be claimed under this subsection for an amount that is
16deducted under section 162 of the Internal Revenue Code.
AB1170,20,2417 5. A partnership, limited liability company, or tax-option corporation may not
18claim the credit under this subsection, but the partners, members, and shareholders
19may claim the credit based on the payments of the qualified startup costs by the
20partnership, limited liability company, or tax-option corporation. The partnership,
21limited liability company, or tax-option corporation shall calculate the amount of the
22credit that may be claimed by each partner, member, or shareholder and shall
23provide that information to each of them. The partners, members, and shareholders
24may claim the credit in proportion to their ownership interests.
AB1170,21,2
1(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
AB1170,10 3Section 10 . 71.07 (4w) of the statutes is created to read:
AB1170,21,44 71.07 (4w) Auto-enrollment tax credit. (a) Definitions. In this subsection:
AB1170,21,85 1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
6(i) of the Internal Revenue Code, that includes an eligible automatic contribution
7arrangement in a qualified employer plan that is sponsored by the claimant and that
8files a claim under this subsection.
AB1170,21,109 2. “Eligible automatic contribution arrangement” has the meaning given in
10section 414 (w) (3) of the Internal Revenue Code.
AB1170,21,1211 3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
12the Internal Revenue Code.
AB1170,21,1513 (b) Filing claims. Subject to the limitations provided in this subsection, a
14claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
15amount of the tax, $500.
AB1170,21,2116 (c) Limitations. 1. The credit under this subsection may be claimed only for
173 consecutive taxable years beginning with the first taxable year for which the
18claimant includes an eligible automatic contribution arrangement in a qualified
19employer plan that is sponsored by the claimant, except that no credit may be
20claimed in a taxable year if an eligible automatic contribution arrangement is not
21included in the qualified employer plan for that taxable year.
AB1170,22,622 2. A partnership, limited liability company, or tax-option corporation may not
23claim the credit under this subsection, but the partners, members, and shareholders
24may claim the credit based on the inclusion by the partnership, limited liability
25company, or tax-option corporation of an eligible automatic contribution

1arrangement in a qualified employer plan that is sponsored by the partnership,
2limited liability company, or tax-option corporation. The partnership, limited
3liability company, or tax-option corporation shall calculate the amount of the credit
4that may be claimed by each partner, member, or shareholder and shall provide that
5information to each of them. The partners, members, and shareholders may claim
6the credit in proportion to their ownership interests.
AB1170,22,87 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
8s. 71.28 (4), applies to the credit under this subsection.
AB1170,11 9Section 11 . 71.10 (4) (ct) and (cu) of the statutes are created to read:
AB1170,22,1010 71.10 (4) (ct) Retirement plan startup costs tax credit under s. 71.07 (4s).
AB1170,22,1111 (cu) Auto-enrollment tax credit under s. 71.07 (4w).
AB1170,12 12Section 12 . 71.21 (4) (a) of the statutes is amended to read:
AB1170,22,1613 71.21 (4) (a) The amount of the credits computed by a partnership under s.
1471.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
15(4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
16partners shall be added to the partnership's income.
AB1170,13 17Section 13. 71.26 (2) (a) 4. of the statutes is amended to read:
AB1170,22,2318 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
19(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4s), (4w), (5e), (5g), (5i), (5j),
20(5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
21liability company, or tax-option corporation that has added that amount to the
22partnership's, limited liability company's, or tax-option corporation's income under
23s. 71.21 (4) or 71.34 (1k) (g).
AB1170,14 24Section 14 . 71.28 (4s) of the statutes is created to read:
AB1170,23,2
171.28 (4s) Retirement plan startup costs tax credit. (a) Definitions. In this
2subsection:
AB1170,23,43 1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
4Internal Revenue Code, that files a claim under this subsection.
AB1170,23,65 2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
6Revenue Code.
AB1170,23,87 3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
8Internal Revenue Code.
AB1170,23,129 (b) Filing claims. Subject to the limitations provided in this subsection, a
10claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
11amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
12or incurred by the claimant during the taxable year.
AB1170,23,1413 (c) Limitations. 1. The credit claimed under this subsection in a taxable year
14may not exceed the greater the following:
AB1170,23,1515 a. $500.
AB1170,23,1816 b. The lesser of $250 for each employee of the claimant who is not a highly
17compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
18or $5,000.
AB1170,23,2019 2. The credit under this subsection may be claimed only for 3 consecutive
20taxable years beginning with the first credit year.
AB1170,23,22213. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
22to the credit under this subsection.
AB1170,23,2423 4. No credit may be claimed under this subsection for an amount that is
24deducted under section 162 of the Internal Revenue Code.
AB1170,24,8
15. A partnership, limited liability company, or tax-option corporation may not
2claim the credit under this subsection, but the partners, members, and shareholders
3may claim the credit based on the payment of the qualified startup costs by the
4partnership, limited liability company, or tax-option corporation. The partnership,
5limited liability company, or tax-option corporation shall calculate the amount of the
6credit that may be claimed by each partner, member, or shareholder and shall
7provide that information to each of them. The partners, members, and shareholders
8may claim the credit in proportion to their ownership interests.
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