Green Bay Correctional Institution
The bill allows the director of the Bureau of Merit Recruitment and Selection in the Division of Personnel Management in DOA to waive competitive hiring procedures for an employee in the classified service at the Green Bay Correctional Institution (GBCI) during the period the facility is decommissioned if the individual is qualified to perform the duties of the position and the position the individual will be filling is assigned to a class at a pay range that is the same as individual’s position at GBCI, or a lower pay range.
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 increase 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 increase 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.
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 6. 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 3. The bill removes these limits on compensation of the executive director and employees of WHEFA.
Apprenticeship programs
Under current law, state agencies may provide on-the-job and off-the-job training to employees without loss of pay to employees. This includes research projects, courses of study, institutes, short courses related to the performance of the employee’s job duties, and paying for tuition and related fees. The bill allows a state agency to provide an apprenticeship program. Under such a program, an apprentice is a probationary employee for the duration of the apprenticeship and attains permanent status upon completion of the apprenticeship but may be separated at any time during the apprenticeship without right of appeal. Under the bill, the compensation plan for state employees may allow for rates of pay for apprentices that reflect the appropriate beginning pay for apprentices as well as pay increases for the attainment of additional qualifications during the apprenticeship. Finally, the bill provides that apprentices may take paid holidays in the same manner as other probationary employees.
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 and November 11, which is the day on which Veterans Day is traditionally celebrated, as paid holidays for UW System employees in the proposal it submits to the Joint Committee on Employee Relations for compensation plan changes for the 2025–27 fiscal 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.
Supplemental appropriations for salary and fringe benefit costs incurred in enterprise assessments and billings
Under current law, if employees of an agency receive a salary increase under a compensation plan approved by JCOER or under a contract approved by the legislature, a state agency can request a program supplement to the agency’s budget from JCF in order to pay for the salary increase and related costs.
Some state agencies pay for services provided by DOA employees rather than having their own employees perform those services, and DOA assesses or bills the agencies for the services provided by DOA employees. The bill creates four new appropriations from which an agency may request a program supplement when DOA assesses or bills the agency for increased costs for those services due to a salary increase under a compensation plan approved by JCOER or under a contract approved by the legislature.
Project employees of district attorney offices under ARPA
The bill provides that individuals who are in project positions that were funded by the federal American Rescue Plan Act of 2021 in offices of district attorneys may be appointed to equivalent permanent positions in those offices without going through the civil service hiring process as new hires.
Project employees of the Public Defender Board under ARPA
The bill provides that individuals who are in project positions that were funded by the federal American Rescue Plan Act of 2021 and who are employed by the Public Defender Board may be appointed to equivalent permanent positions in those offices without going through the civil service hiring process as new hires.
Position transfers and funding changes
Under the bill, all of the following occur: on January 1, 2027, the funding source for 24.0 FTE FED positions in DOA changes from a single DOA appropriation to two DOA program revenue appropriations and one DOA GPR appropriation; and 17.5 FTE FED positions and incumbent employees transfer from DOA to the Wisconsin Employment Relations Commission, and the position funding changes to a single WERC GPR appropriation.
Secretary of state
Deputy secretary of state
The bill creates the position of deputy secretary of state. The secretary of state may delegate any duty or power to the deputy secretary of state, except duties and powers the secretary of state performs as a member of the BCPL.
Appropriations to the secretary of state
Under current law, DFI’s general program operations are funded from an annual program revenue appropriation. From this appropriation, $150,000 is transferred annually to an appropriation to the secretary of state for general program operations. The bill increases the amount of the transfer to $502,900 in the 2025–26 fiscal year and $555,400 annually thereafter.
The bill also creates a continuing appropriation to the secretary of state of all moneys received from the federal government to be expended for the purposes for which received and creates a continuing program revenue appropriation to the secretary of state of all moneys received by the secretary of state from gifts, grants, bequests, and devises to be expended for the purposes for which made and received. The bill makes certain other changes to appropriations to the secretary of state, including an increase in the lapse of certain moneys appropriated to the secretary of state to the general fund at the end of each fiscal year.
Office of the Secretary of State
The bill provides that the Office of the Secretary of State is the exclusive office that may affix the great seal of the state of Wisconsin to a document and authenticate the document. The bill also provides that the Office of the Secretary of State must provide apostille services.
Legislature
Popular initiative and referendum
The bill requires the legislature to introduce and vote on a joint resolution providing for a constitutional amendment that creates a petition process by which the people may propose and approve laws and constitutional amendments at an election and that creates a referendum process by which the people may reject an act of the legislature. A proposed constitutional amendment requires adoption by two successive legislatures, and ratification by the people, before it can become effective.
Specifically, the proposed constitutional amendment provides that the people may file a petition with the agency that administers state elections (currently the Elections Commission) for a referendum to reject any act of the legislature, a section of any act, or an item of appropriation in any act.
A petition for referendum must be signed by qualified electors equaling at least 4 percent of the vote cast for the office of governor at the last preceding gubernatorial election. A qualified elector is a U.S. citizen age 18 or older who has resided in an election district or ward in Wisconsin for at least 28 days.
After validating a petition’s signatures, the agency that administers state elections is required to order a referendum at the next general election occurring at least 120 days after the petition was filed with the agency. No act or part of an act rejected in a referendum may be reenacted during the legislative session in which it was rejected.
The proposed constitutional amendment further provides that the people may propose, by petition filed with the agency that administers state elections, laws and constitutional amendments for a vote at an election. The petition must satisfy all of the following conditions:
1. For a petition for an initiative law, be signed by qualified electors equaling at least 6 percent of the vote cast for the office of governor at the last preceding gubernatorial election.
2. For a petition for an initiative constitutional amendment, be signed by qualified electors equaling at least 8 percent of the vote cast for the office of governor at the last preceding gubernatorial election.
3. Include the full text of the proposed law or constitutional amendment prepared in proper form. Upon request by any qualified elector, the agency that administers state elections is required to have the proposed law or constitutional amendment drafted in proper form and made available to the public. The proposed law or amendment must embrace no more than one subject, and that subject must be expressed in the title.
4. Be filed with the agency that administers state elections not less than 120 days before the election at which the proposed law or constitutional amendment is to be voted upon.
Similar to the process for a referendum, after verifying an initiative petition’s signatures, the agency that administers state elections is required to order the submission of the initiative law or constitutional amendment to the qualified electors of the state for their approval or rejection at the next succeeding general election occurring at least 120 days after the petition was filed with the agency.
If approved by a majority of the qualified electors voting at the election, an initiative law or constitutional amendment goes into effect on the 30th day after the date the agency that administers state elections certifies the election results, unless a different effective date is specified in the initiative. The legislature may not repeal or amend an initiative law for the two years immediately succeeding its publication and may not repeal or amend an initiative law except by a vote of two-thirds of all members elected to each house. If an initiative law or constitutional amendment is rejected at the election, substantially the same initiative law or amendment, as determined by the agency that administers state elections, may not be considered again by voters under the initiative process for at least five years.
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 eliminates all of these 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.
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 that 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 a passive review, 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.
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.
TAXATION
Income taxation
Tax exemption for tips
The bill creates an income tax exemption for cash tips received by an employee from the customers of the employee’s employer.
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.
Homestead tax credit expansion
Under current law, the homestead tax credit is a refundable income tax credit that may be claimed by homeowners and renters. The credit is based on the claimant’s household income and the amount of property taxes or rent constituting property taxes on his or her Wisconsin homestead. Because the credit is refundable, if the credit exceeds the claimant’s income tax liability, he or she receives the excess as a refund check. Under current law, there are three key dollar amounts used when calculating the credit:
1. If household income is $8,060 or less, the credit is 80 percent of the property taxes or rent constituting property taxes. If household income exceeds $8,060, the property taxes or rent constituting property taxes are reduced by 8.785 percent of the household income exceeding $8,060, and the credit is 80 percent of the reduced property taxes or rent constituting property taxes.
2. The credit may not be claimed if household income exceeds $24,680.
3. The maximum property taxes or rent constituting property taxes used to calculate the credit is $1,460.
Beginning with claims filed for the 2025 tax year, the bill increases the income phase-out threshold from $8,060 to $19,000, reduces the percentage used for household income above the income phase-out threshold to 7.891 percent, and increases the maximum income amount from $24,680 to $37,500. The bill also indexes the $19,000, $37,500, and $1,460 amounts for inflation during future tax years.
Changing the name of the homestead credit
The bill also renames the homestead income tax credit to the property tax and rent rebate.
Veterans and surviving spouses property tax credit eligibility expansion
The bill reduces the eligibility threshold for an eligible veteran, the spouse of an eligible veteran, and the unremarried surviving spouse of an eligible veteran to claim the veterans and surviving spouses property tax credit under the individual income tax system. Under the bill, a claimant may claim the credit if the service-connected disability rating of the veteran for whom the claimant is claiming the credit is at least 70 percent. Currently, that rating must be 100 percent.
Under the bill, the maximum credit that a claimant may claim is multiplied by the percentage of the service-connected disability rating. The bill does not affect a claimant who claims the credit based on the individual unemployability rating. Under current law, a claimant may also claim the credit if the disability rating based on individual unemployability of the veteran for whom the claimant is claiming the credit is 100 percent.
Rent qualifying for the veterans and surviving spouses property tax credit
