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1. Raises the threshold for charging a reimbursable nonprofit employer the
assessment to $20 instead of $10.
2. Allows DWD, in lieu of or in addition to assessing nonprofit reimbursable
employers as described above, to apply moneys from the $2,000,000 set aside to the
uncollectible reimbursable benefits account described above, subject to certain
limitations.
Waiver of overpayments
Current law requires the recovery of benefits that were erroneously paid to an
individual to be waived if certain conditions apply, including that the erroneous
payment was the result of a departmental error. Current law specifies what does and
does not constitute a “departmental error” and also provides that if a determination
or decision is amended, modified, or reversed by an appeal tribunal (administrative
law judge), the Labor and Industry Review Commission, or any court, that action is
not to be treated as establishing a departmental error.
This bill specifically provides that, for the purposes of the waiver of recovery of
benefits, a “departmental error” does not include an error made by an administrative
law judge.
Collection of debt by Department of Revenue
Subject to certain exceptions, current law requires a state agency and the
Department of Revenue to enter into a written agreement to have DOR collect
certain amounts owed to the state agency. This bill prohibits DOR from entering into
an agreement with DWD for the collection of amounts owed to DWD under the UI
law.
Fiscal agent election of employer status
Generally, under current law, an individual who receives long-term support
services in his or her home through certain government-funded care programs is
considered to be an employer under the UI law of a person who provides those

services to the individual. Such individuals may use fiscal agents, whose
responsibilities include remitting any federal UI taxes or state UI contributions
owed by the individual as a result of that employment.
The bill allows a private agency that serves as a fiscal agent or contracts with
a fiscal intermediary to serve as a fiscal agent to such an individual receiving
long-term support services to elect to instead to be the employer of one or more
employees providing those services, subject to certain requirements.
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:
SB671,1 1Section 1 . 16.48 (1) (a) (intro.) of the statutes is renumbered 16.48 (1) (intro.)
2and amended to read:
SB671,4,93 16.48 (1) (intro.) No later than April 15 May 31 of each odd-numbered
4even-numbered year, the secretary of workforce development shall prepare and
5furnish to the governor, the speaker of the assembly, the minority leader of the
6assembly, and the majority and minority leaders of the senate, and the council on
7unemployment insurance,
a statement of unemployment insurance financial
8outlook, which shall contain all of the following, together with the secretary's
9recommendations and an explanation for such recommendations:
SB671,2 10Section 2 . 16.48 (1) (a) 1., 2., 3., 4., 5. and 6. of the statutes are renumbered
1116.48 (1) (am), (bm), (c), (d), (e) and (f), and 16.48 (1) (bm), (c) and (f), as renumbered,
12are amended to read:
SB671,4,1413 16.48 (1) (bm) Specific proposed changes, if any, in the laws relating to
14unemployment insurance financing, benefits, and administration.
SB671,4,1515 (c) Projections specified in subd. 1. par. (am) under the proposed laws.
SB671,4,1716 (f) If unemployment insurance program debt is projected at the end of the
17forecast period, the reasons why it is not methods proposed to liquidate the debt.
SB671,3
1Section 3. 16.48 (1) (b) of the statutes is repealed.
SB671,4 2Section 4 . 16.48 (2) of the statutes is repealed.
SB671,5 3Section 5 . 16.48 (3) of the statutes is amended to read:
SB671,5,144 16.48 (3) No Biennially, no later than June 15 January 31 of each
5odd-numbered even-numbered year, the secretary of workforce development, under
6the direction of
shall submit to the governor, shall submit to each member of the
7legislature an updated speaker of the assembly, the minority leader of the assembly,
8the majority and minority leaders of the senate, and the council on unemployment
9insurance the
statement of unemployment insurance financial outlook which shall
10contain the information specified in
prepared under sub. (1) (a), together with the
11governor's recommendations and an explanation for such recommendations, and a
12copy of the
a report required that summarizes the deliberations of the council and
13the position of the council regarding any proposed change to the unemployment
14insurance laws submitted
under sub. (1) (b).
SB671,6 15Section 6 . 16.48 (4) of the statutes is created to read:
SB671,5,1816 16.48 (4) The department shall post the most recent version of the statement
17prepared under sub. (1) and the most recent version of the report prepared under sub.
18(3) on the department's Internet site.
SB671,7 19Section 7 . 71.93 (8) (b) 2. of the statutes is amended to read:
SB671,5,2320 71.93 (8) (b) 2. The department may enter into agreements described under
21subd. 1. with the courts, the legislature, authorities, as defined in s. 16.41 (4), and
22local units of government. The department may not enter into an agreement
23described under subd. 1. to collect amounts owed under ch. 108.
SB671,8 24Section 8 . 108.02 (10e) (c) of the statutes is created to read:
SB671,6,2
1108.02 (10e) (c) “Departmental error” does not include an error made by an
2appeal tribunal appointed under s. 108.09 (3).
SB671,9 3Section 9. 108.02 (13) (k) of the statutes, as affected by 2019 Wisconsin Act 9,
4is amended to read:
SB671,6,115 108.02 (13) (k) “Employer" Except as provided in s. 108.065 (3m), “employer”
6does not include a county department, an aging unit, or, under s. 46.2785, a private
7agency that serves as a fiscal agent or contracts with a fiscal intermediary to serve
8as a fiscal agent under s. 46.27 (5) (i), 46.272 (7) (e), or 47.035 as to any individual
9performing services for a person receiving long-term support services under s.
1046.272 (7) (b), 46.275, 46.277, 46.278, 46.2785, 46.286, 46.495, 51.42, or 51.437 or
11personal assistance services under s. 47.02 (6) (c).
SB671,10 12Section 10 . 108.05 (3) (a) of the statutes is amended to read:
SB671,7,213 108.05 (3) (a) Except as provided in pars. (c), (cm), (d) and (dm) and s. 108.062,
14if an eligible employee earns wages in a given week, the first $30 of the wages shall
15be disregarded and the employee's applicable weekly benefit payment shall be
16reduced by 67 percent of the remaining amount, except that no such employee is
17eligible for benefits if the employee's benefit payment would be less than $5 for any
18week. For purposes of this paragraph, “wages" includes any salary reduction
19amounts earned that are not wages and that are deducted from the salary of a
20claimant by an employer pursuant to a salary reduction agreement under a cafeteria
21plan, within the meaning of 26 USC 125, and any amount that a claimant would have
22earned in available work under s. 108.04 (1) (a) which is treated as wages under s.
23108.04 (1) (bm), but excludes any amount that a claimant earns for services
24performed as a volunteer fire fighter, volunteer emergency medical services
25practitioner, or volunteer emergency medical responder. In applying this paragraph,

1the department shall disregard discrepancies of less than $2 between wages reported
2by employees and employers.
SB671,11 3Section 11 . 108.05 (3) (c) (intro.) of the statutes is amended to read:
SB671,7,74 108.05 (3) (c) (intro.) Except as provided in par. (cm) and when otherwise
5authorized in an approved work-share program under s. 108.062, a claimant is
6ineligible to receive any benefits for a week in which one or more of the following
7applies to the claimant for 32 or more hours in that week:
SB671,12 8Section 12 . 108.05 (3) (cm) of the statutes is created to read:
SB671,7,119 108.05 (3) (cm) The department shall disregard an employee's hours worked
10for an employer in a week and wages payable to the employee for the week when
11determining the employee's benefit eligibility if all the following apply:
SB671,7,1312 1. The employer requires the employee to work during the week as a condition
13of continued employment with the employer.
SB671,7,1514 2. The employer is unable to pay wages because a government unit or the
15federal government fails to appropriate funds to the employer.
SB671,7,1816 3. The employer is not expected to pay the employee for the services performed
17or the employer will, until funds are appropriated by a government unit or the federal
18government, indefinitely delay payment for the services performed.
SB671,13 19Section 13 . 108.065 (1e) (intro.) of the statutes is amended to read:
SB671,7,2320 108.065 (1e) (intro.) Except as provided in subs. (2) and (3) to (3m), if there is
21more than one employing unit that has a relationship to an employee, the
22department shall determine which of the employing units is the employer of the
23employee by doing the following:
SB671,14 24Section 14 . 108.065 (3m) of the statutes is created to read:
SB671,8,9
1108.065 (3m) A private agency that serves as a fiscal agent or contracts with
2a fiscal intermediary to serve as a fiscal agent to recipients of services under ch. 46,
347, or 51 may elect to be the employer of one or more employees providing those
4services. As a condition of eligibility for election to be the employer of one or more
5employees providing those services, the private agency shall notify in writing the
6recipient of any such services of its election, for purposes of the unemployment
7insurance law, to be the employer of any worker providing such services to the
8recipient, and must be treated as the employer under 26 USC 3301 to 3311 for
9purposes of federal unemployment taxes on the worker's services.
SB671,15 10Section 15 . 108.101 (5) of the statutes is created to read:
SB671,8,1611 108.101 (5) Notwithstanding sub. (4), a final order or judgment of conviction
12for a crime entered by a court is binding on the convicted person in an action or
13proceeding under this chapter that relates to the criminal conviction. A person
14convicted of a crime is precluded from denying the essential allegations of the
15criminal offense that is the basis for the conviction in an action or proceeding under
16this chapter.
SB671,16 17Section 16. 108.151 (7) (c) of the statutes is amended to read:
SB671,9,518 108.151 (7) (c) The fund's treasurer shall determine the total amount due from
19employers electing reimbursement financing under this section that is uncollectible
20as of June 30 of each year, but not including any amount that the department
21determined to be uncollectible prior to before January 1, 2004. No amount may be
22treated as uncollectible under this paragraph unless the department has exhausted
23all reasonable remedies for collection of the amount, including liquidation of the
24assurance required under sub. (4). The department shall charge the total amounts
25so determined to the uncollectible reimbursable benefits account under s. 108.16

1(6w). Whenever, as of June 30 of any year, this that account has a negative balance
2of $5,000 or more, the treasurer shall, except as provided in par. (i), determine the
3rate of an assessment to be levied under par. (b) for that year, which shall then
4become payable by all employers that have elected reimbursement financing under
5this section as of that date.
SB671,17 6Section 17. 108.151 (7) (f) of the statutes is amended to read:
SB671,9,107 108.151 (7) (f) If any employer would otherwise be assessed an amount less
8than $10 $20 for a calendar year, the department shall, in lieu of requiring that
9employer to pay an assessment for that calendar year, apply the amount that the
10employer would have been required to pay to the other employers on a pro rata basis.
SB671,18 11Section 18. 108.151 (7) (i) of the statutes is created to read:
SB671,9,1812 108.151 (7) (i) In lieu of or in addition to assessing employers as provided in
13par. (c), the fund's treasurer may apply amounts set aside in the fund's balancing
14account under s. 108.155 (2) (a) to amounts determined to be uncollectible under par.
15(c) by transferring those amounts to the account under s. 108.16 (6w). The fund's
16treasurer may not act under this paragraph whenever the balance remaining of the
17amount set aside under s. 108.155 (2) (a) is less than $1,750,000 and may not act to
18reduce the amount set aside below that amount.
SB671,19 19Section 19. 108.155 (2) (a) of the statutes is amended to read:
SB671,9,2520 108.155 (2) (a) On October 2, 2016, the fund's treasurer shall set aside
21$2,000,000 in the balancing account for accounting purposes. On an ongoing basis,
22the fund's treasurer shall tally the amounts allocated to reimbursable employers'
23accounts under s. 108.04 (13) (d) 4. c. and all amounts transferred to the account
24under s. 106.16 (6w) as provided in s. 108.151 (7) (i) and shall
deduct those amounts
25from the amount set aside plus any interest calculated thereon.
SB671,20
1Section 20. 108.16 (6m) (j) of the statutes is created to read:
SB671,10,32 108.16 (6m) (j) Any amount transferred to the account under sub. (6w) as
3provided in s. 108.151 (7) (i).
SB671,21 4Section 21. 108.16 (6w) of the statutes is amended to read:
SB671,10,85 108.16 (6w) The department shall maintain within the fund an uncollectible
6reimbursable benefits account to which the department shall credit all amounts
7received from employers under s. 108.151 (7)
and all amounts transferred from the
8fund's balancing account as provided in s.
108.151 (7) (i).
SB671,22 9Section 22 . 108.22 (10) of the statutes, as affected by 2019 Wisconsin Act 9,
10is amended to read:
SB671,10,2511 108.22 (10) A private agency that serves as a fiscal agent under s. 46.2785 or
12contracts with a fiscal intermediary to serve as a fiscal agent under s. 46.272 (7) (e)
13or 47.035 as to any individual performing services for a person receiving long-term
14support services under s. 46.272 (7) (b), 46.275, 46.277, 46.278, 46.2785, 46.286,
1546.495, 51.42, or 51.437 or personal assistance services under s. 47.02 (6) (c) may be
16found jointly and severally liable for the amounts owed by the person under this
17chapter, if, at the time the person's quarterly report is due under this chapter, the
18private agency served as a fiscal agent for the person. The liability of the agency as
19provided in this subsection survives dissolution, reorganization, bankruptcy,
20receivership, assignment for the benefit of creditors, judicially confirmed extension
21or composition, or any analogous situation of the person and shall be set forth in a
22determination or decision issued under s. 108.10. An appeal or review of a
23determination under this subsection shall not include an appeal or review of
24determinations of amounts owed by the person. This subsection does not apply with
25respect to a private agency that has made an election under s. 108.065 (3m).
SB671,23
1Section 23. Initial applicability.
SB671,11,32 (1) The treatment of s. 108.02 (10e) (c) first applies to determinations issued
3under s. 108.09 on the effective date of this subsection.
SB671,11,54 (2) The treatment of s. 108.05 (3) (a), (c) (intro.), and (cm) first applies to claims
5filed on the effective date of this subsection.
SB671,24 6Section 24. Effective dates. This act takes effect on the first Sunday after
7publication, except as follows:
SB671,11,98 (1) The treatment of s. 16.48 (1) (a) (intro.), 1., 2., 3., 4., 5. and 6. and (b), (2),
9(3), and (4) takes effect on February 1, 2020.
SB671,11,1110 (2) The treatment of ss. 108.02 (13) (k) and 108.065 (1e) (intro.) and (3m) takes
11effect on January 1, 2021.
SB671,11,1212 (End)
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