Removal of salary caps for WHEDA employees
Current law allows WHEDA to employ an executive director and limits the
compensation of the executive director and employees of WHEDA to the maximum
of the salary range established for positions assigned to executive salary group six.
The bill removes this limit on compensation of the executive director and staff of
WHEDA.
Removal of salary caps for WHEFA employees
Current law allows WHEFA to employ an executive director and limits the
compensation of the executive director to the maximum of the salary range
established for positions assigned to executive salary group six. Current law also
limits the compensation of each other employee of WHEFA to the maximum of the
salary range established for positions assigned to executive salary group three. The
bill removes these limits on compensation of the executive director and staff of
WHEFA.
Paid family and medical leave
The bill requires the administrator of the Division of Personnel Management
in DOA to develop a program for paid family and medical leave of 12 weeks annually
for most state employees. The bill requires the administrator to submit the plan for
approval as a change to the state compensation plan to the Joint Committee on
Employment Relations. If JCOER approves the plan, the plan becomes effective
immediately.
Paid sick leave for limited term employees
Under current law, permanent and project state employees receive the
following paid leave: vacation, personal holidays, sick leave, and legal holidays. The
bill requires the state to provide paid sick leave to limited term employees of the state
at the same rate as to permanent and project state employees.
Vacation hours for state employees
The bill provides additional annual leave hours to state employees during their
third, fourth, and fifth years of service.
Under current law, state employees who are in nonexempt status under the
federal Fair Labor Standards Act earn annual leave at the rate of 104 hours per year
of continuous service during the first five years of service and, on an employee's fifth
anniversary of continuous service, the rate increases to 144 hours of annual leave per
year of continuous service. Under the bill, beginning on the employee's second
anniversary, a state employee in nonexempt status begins earning vacation hours at
the rate of 120 hours per year of service.
Under current law, state employees who are in exempt status under the federal
Fair Labor Standards Act earn annual vacation at the rate of 120 hours per year of
continuous service during the first five years of service and, on the fifth anniversary
of continuous service, the rate increases to 160 hours of annual leave per year of
continuous service. Under the bill, beginning on the employee's second anniversary,
a state employee in exempt status begins earning vacation hours at the rate of 136
hours per year of service.
Pay progression caps; deputy and assistant district attorneys, assistant
state public defenders, and assistant attorneys general
Under current law, there are pay progression plans for deputy and assistant
district attorneys, assistant state public defenders, and assistant attorneys general.
These pay progression plans consist of 17 hourly salary steps, with each step equal
to one-seventeenth of the difference between the lowest hourly salary and the
highest hourly salary for the salary range, and are based entirely on merit. However,
current law caps the annual salary adjustment that a deputy or assistant district
attorney, assistant state public defender, or assistant attorney general may receive
under the respective pay progression plans to no more than 10 percent of the
individual's base pay.
Under the bill, the 10 percent cap on annual salary adjustments for deputy and
assistant district attorneys, assistant state public defenders, and assistant
attorneys general does not apply during the 2023-24 and 2024-25 fiscal years.
Juneteenth state holiday
The bill designates June 19, the day on which Juneteenth is celebrated, as a
state holiday on which state offices are closed. Under current law, the offices of the
agencies of state government are generally closed on Saturdays, Sundays, and a total
of nine state holidays. The bill also requires the administrator of the Division of
Personnel Management in DOA to include June 19 as a paid holiday for UW System
employees in the proposal it submits to JCOER for compensation plan changes for
the 2023-25 biennium.
Veterans Day state holiday
The bill designates November 11, the day on which Veterans Day is
traditionally celebrated, as a state holiday on which state offices are closed. Under
current law, the offices of the agencies of state government are generally closed on
Saturdays, Sundays, and a total of nine state holidays. Additionally, under current
law, state employees receive annually a total of 4.5 paid personal holidays, one of
which is provided specifically in recognition of Veterans Day. Under the bill, state
employees continue to receive 4.5 paid personal holidays. However, the bill removes
the specification that one of the paid personal holidays is provided in recognition of
Veterans Day.
In total, the bill increases the number of regular paid holidays state employees
receive annually from nine days to 11 days.
Legislature
Legislative intervention in certain court proceedings
Current law provides that the legislature may intervene as a matter of right in
an action in state or federal court when a party to the action does any of the following:
1. Challenges the constitutionality of a statute.
2. Challenges a statute as violating or being preempted by federal law.
3. Otherwise challenges the construction or validity of a statute.
Current law further provides that the legislature must be served with a copy
of the proceedings in all such actions, regardless of whether the legislature
intervenes in the action.
The bill repeals all of those provisions.
Retention of legal counsel by the legislature
Current law allows representatives to the assembly and senators, as well as
legislative employees, to receive legal representation from DOJ in most legal
proceedings. However, current law also provides all of the following:
1. With respect to the assembly, that the speaker of the assembly may authorize
a representative to the assembly or assembly employee who requires legal
representation to obtain outside legal counsel if the acts or allegations underlying
the action are arguably within the scope of the representative's or employee's
legislative duties, and the speaker may obtain outside legal counsel in any action in
which the assembly is a party or in which the interests of the assembly are affected,
as determined by the speaker.
2. With respect to the senate, that the senate majority leader may authorize
a senator or senate employee who requires legal representation to obtain outside
legal counsel if the acts or allegations underlying the action are arguably within the
scope of the senator's or employee's legislative duties, and the majority leader may
obtain outside legal counsel in any action in which the senate is a party or in which
the interests of the senate are affected, as determined by the majority leader.
3. That the cochairpersons of the Joint Committee on Legislative Organization
(JCLO) may authorize a legislative service agency employee who requires legal
representation to obtain outside legal counsel if the acts or allegations underlying
the action are arguably within the scope of the employee's legislative duties, and the
cochairpersons may obtain outside legal counsel in any action in which the
legislature is a party or in which the interests of the legislature are affected, as
determined by the cochairpersons.
The bill eliminates these provisions. Under the bill, representatives to the
assembly and senators, as well as legislative employees, may continue to receive
legal representation from DOJ in most legal proceedings.
Advice and consent of the senate
Under current law, any individual nominated by the governor or another state
officer or agency subject to the advice and consent of the senate, whose confirmation
for the office or position is rejected by the senate, may not do any of the following
during the legislative session biennium in which his or her nomination is rejected:
1. Hold the office or position for which he or she was rejected.
2. Be nominated again for that office or position.
3. Perform any duties of that office or position.
The bill eliminates those restrictions.
Legislative Human Resources Office
The bill creates a Legislative Human Resources Office (LHRO), a nonpartisan
legislative service agency, headed by a director. JCLO appoints the director and the
director reports to JCLO. The director is assigned to executive salary group six, and
the director and all LHRO staff hold positions in the unclassified service of the state
civil service system. LHRO must perform all of the following duties:
1. Provide human resources services to the legislative branch, as directed by
JCLO.
2. Establish a formal complaint process to review and investigate allegations
of harassment, discrimination, retaliation, violence, or bullying by legislators,
legislative employees, and legislative service agency employees. The office shall
investigate all such allegations, unless the director designates another person or
entity to review and investigate any specific allegation.
In addition, under the bill, the LHRO director must perform the following
duties:
1. Direct the operations of LHRO staff.
2. Employ, train, and supervise the personnel assigned to the director.
3. Supervise all expenditures of LHRO.
4. Manage reviews and investigations of the formal complaint process. Upon
completion of an investigation, report the findings to the appropriate legislative
leader or employee supervisor.
5. On a periodic basis, recommend to JCLO improvements to human resources
services and programs.
Records and correspondence of legislators
Under current law, the Public Records Board prescribes policies and standards
for the retention and disposition of public records made or received by a state officer
or agency. However, for purposes of public records retention, the definition of “public
records” does not include the records and correspondence of any legislator. The bill
eliminates the exception for a legislator's records and correspondence.
Passive review by JCF; objections to be public
Current law requires that JCF review certain proposed actions before an
agency may execute the action. The review required often takes the form of a passive
review. In other words, the agency must submit the proposed action to JCF and, if
the cochairpersons of JCF do not notify the agency within a certain period, often 14
days, that a member of JCF has objected to the action, the agency may execute the
proposed action. If, however, a member objects, the agency is limited to the action
as approved or modified by JCF. The bill specifies that the name of any JCF member
who objects to the proposed action, as well as the reason the member objects, must
be recorded and made publicly available.
Review of legislation relating to crimes
Under current law, there is a Joint Review Committee on Criminal Penalties.
Under current law, if a bill is introduced that creates a crime or revises a penalty for
an existing crime, the committee may be requested to prepare a report on the bill.
The request must come from the chair of the standing committee to which the bill is
referred or, if not referred to a standing committee, from the speaker of the assembly
for an assembly bill or the presiding officer of the senate for a senate bill. Upon such
a request, the joint review committee must prepare a report concerning the costs
incurred or saved if the bill were enacted, the consistency of the penalties proposed
with current law penalties, and whether the acts prohibited under the bill are
already prohibited under current law.
The bill requires that any introduced bill that creates a crime or revises a
penalty for an existing crime must be referred to the Joint Review Committee on
Criminal Penalties for such a report and prohibits the legislature from taking
further action on the bill until the report is prepared.
Capitol security
Under current law, DOA is required to submit any proposed changes to security
at the capitol, including the posting of a firearm restriction, to JCLO for approval
under passive review. The bill eliminates that requirement.
Administrative law
Deference to agency interpretations of law
Under current law, courts are prohibited from giving deference to agency
interpretations of law and agencies are prohibited from seeking such deference from
a court. The bill repeals these prohibitions.
Suspension of administrative rules
Under current law, administrative rules that are in effect may be temporarily
suspended by the Joint Committee for Review of Administrative Rules (JCRAR). If
JCRAR suspends a rule, JCRAR must introduce bills in each house of the legislature
to make the suspension permanent. If neither bill to support the suspension is
ultimately enacted, the rule remains in effect. However, current law specifies that
JCRAR may suspend a rule multiple times. The bill repeals the provision allowing
JCRAR to suspend a rule multiple times.
Agency rule-making authority
Current law provides that a settlement agreement, consent decree, or court
order does not confer rule-making authority and cannot be used by an agency as
authority to promulgate administrative rules. Additionally, no agency may agree to
promulgate a rule as a term in any settlement agreement, consent decree, or
stipulated order of a court unless the agency has explicit statutory authority to
promulgate the rule at the time the settlement agreement, consent decree, or
stipulated order of a court is executed. The bill repeals these limitations on agency
rule-making authority.
Advisory committees for rule making
Current law requires that, whenever an agency appoints a committee to advise
the agency on rule making, the agency must submit a list of the members of the
committee to JCRAR. The bill repeals this requirement.
taxation
Income taxation
Family and individual reinvestment credit
The bill creates a new family and individual reinvestment income tax credit for
taxable years beginning in 2023. The credit is nonrefundable and may be claimed
only up to the amount of the taxpayer's income tax liability. Under the bill, for a
single individual or an individual who files as a head of household whose adjusted
gross income (AGI) is less than $100,000, for a married couple filing jointly whose
combined AGI is less than $150,000, or for a married individual filing separately
whose AGI is less than $75,000, the credit is equal to 10 percent of the claimant's net
tax liability or, for a single individual, head of household, or married couple filing
jointly, $100, and for a married individual filing separately, $50, whichever is greater.
Net tax liability is a claimant's income tax liability after the application of most
nonrefundable income tax credits. Under the bill, the credit phases out to zero as a
single individual or head of household filer's AGI increases from $100,000 to
$120,000. A similar phaseout occurs for a married joint filer whose combined AGI
increases from $150,000 to $175,000 and a married separate filer whose AGI
increases from $75,000 to $87,500. Also, under the bill, no new claims for the
working families tax credit may be filed for a taxable year that begins after December
31, 2022.
Manufacturing and agriculture credit limitation
Currently, a person may claim a tax credit on the basis of the person's income
from manufacturing or agriculture. A taxpayer may claim a credit equal to 7.5
percent of the income derived from either the sale of tangible personal property
manufactured in whole or in part on property in this state that is assessed as
manufacturing property or from the sale of tangible personal property produced,
grown, or extracted in whole or in part from property in this state assessed as
agricultural property. If the amount of the credit exceeds the taxpayer's income tax
liability, the taxpayer does not receive a refund, but may apply the balance to the
taxpayer's tax liability in subsequent taxable years.
The bill limits to $300,000 the amount of income from manufacturing that a
person may use as the basis for claiming the credit. The bill does not affect the
amount of income from agriculture that may be used as a basis for claiming the
credit.
Expanding the 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. The bill allows
an individual to claim a state income tax credit equal to the full amount claimed for
the federal child and dependent care tax credit.
Earned income tax credit
The bill increases the amount that an individual with fewer than three
qualifying children may claim as the Wisconsin earned income tax credit (EITC).
Under current law, the Wisconsin EITC is equal to a percentage of the federal EITC.
The percentage is 4 percent of the federal EITC if the individual has one qualifying
child, 11 percent if the individual has two qualifying children, and 34 percent if the
individual has three or more qualifying children. The credit is refundable, which
means that if the credit exceeds the individual's tax liability, he or she will receive
the excess as a refund check.
Under the bill, the percentage of the federal EITC that an eligible individual
may claim for Wisconsin purposes is 16 percent if the individual has one qualifying
child, 25 percent if the individual has two qualifying children, and 34 percent if the
individual has three or more qualifying children.
Caregiver tax credit
The bill creates an income tax credit for individuals who pay for items that
directly relate to the care or support of a family member who requires assistance with
one or more daily living activities and is over the age of 18. The credit equals 50
percent of the expenses, limited to a maximum annual credit per family member of
$500, or $250 for married spouses filing separately. If more than one individual may
claim the credit based on the same family member, the maximum annual credit
amount is apportioned among them based on expenses paid. For married couples
filing jointly, the credit phases out between federal adjusted gross income of $150,000
and $170,000, and no credit may be claimed if federal AGI exceeds $170,000. For all
other taxpayers, the phase out range is between federal AGI of $75,000 and $85,000,
and no credit may be claimed if federal AGI exceeds $85,000. Under the bill,
expenses that qualify for the credit include amounts spent on improving the
claimant's primary residence to assist the family member, purchasing equipment to
help the family member with daily living activities, and obtaining other goods or
services to help care for the family member. Expenses that do not qualify for the
credit include general food, clothing, transportation, and household repair costs, as
well as amounts that are reimbursed by insurance or other means. The credit is
nonrefundable, which means it may be claimed only up to the amount of the
claimant's tax liability.
First-time home buyer savings accounts
The bill creates a tax-advantaged first-time home buyer savings account.
Under the bill, an individual, known as the account holder, may open an account at
a financial institution for the purpose of paying the down payment and closing costs
for the purchase of a single-family residence in this state by the account's designated
beneficiary. The beneficiary, who may be the account holder, must be a resident of
this state who has not owned a single-family residence during the 36 months prior
to the purchase. An individual may be designated the beneficiary of more than one
account, but not by the same account holder. The account holder may change the
beneficiary at any time. An account may only remain open for 10 years.
The bill provides that an account holder, when calculating his or her income for
state tax purposes, may subtract the deposits that he or she made into the account
during the year, as well as any interest and other gains on the account that are
redeposited into it. The maximum amount of deposits that the account holder may
subtract per account each year is $5,000, which is increased to $10,000 if he or she
is married and files a joint return. Over all taxable years, the account holder may
not subtract more than $50,000 of deposits into any account for each beneficiary. The
bill provides that other persons may contribute to the account, but they may not
subtract their contributions.
Under the bill, with limited exceptions, if an amount is withdrawn from the
account for any reason other than paying the down payment and closing costs, the
account holder is subject to a 10 percent penalty tax on the withdrawal and must
include the amount of the withdrawal in income for state tax purposes.
The bill requires that the account holder annually submit information about
the account to DOR, including a list of the account's transactions. The bill's
provisions apply to taxable years beginning after December 31, 2022.
Veterans and surviving spouses property tax credit
