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Please see http://docs.legis.wisconsin.gov for the production version.
This bill requires the Legislative Audit Bureau to conduct an audit of DWD's
efforts to detect and prevent fraud and to recover fraud overpayments in the UI
program, the federal pandemic unemployment assistance program, and the
pandemic emergency unemployment compensation program.
Transfer of employees to DWD
The bill authorizes the secretary of administration to temporarily transfer
employees from any executive branch agency to DWD to assist in deciding UI
appeals. Under the bill, DWD must pay all salary and fringe benefit costs of that
employee during the time the employee is at DWD.

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:
AB938,1 1Section 1. 16.54 (2) (a) 1. of the statutes is amended to read:
AB938,5,132 16.54 (2) (a) 1. Except as provided in subd. 2. and sub. (14), whenever funds
3shall be made available to this state through an act of congress and the funds are
4accepted as provided in sub. (1), the governor shall designate the state board,
5commission, or department to administer any of such funds, and the board,
6commission, or department so designated by the governor is authorized and directed
7to administer such funds for the purpose designated by the act of congress making
8an appropriation of such funds, or by the department of the United States
9government making such funds available to this state. Whenever a block grant is
10made to this state, no moneys received as a part of the block grant may be transferred
11from use as a part of one such grant to use as a part of another such grant, regardless
12of whether a transfer between appropriations is required, unless the joint committee
13on finance approves the transfer.
AB938,2 14Section 2. 16.54 (14) of the statutes is created to read:
AB938,5,1915 16.54 (14) (a) In this subsection, “benefit augmentation” means for any state
16agency or official, including the governor, to encumber or expend moneys received
17from, or accept reimbursement from, the federal government or for any state agency
18or official, including the governor, to enter into any contract or agreement with the
19federal government or any federal agency, to do any of the following:
AB938,6,320 1. Increase the weekly unemployment insurance benefit rate payable to
21claimants above what is provided under s. 108.05, including by providing any stipend

1or other benefit separately from unemployment insurance benefits, if eligibility for
2that stipend or benefit is determined, in whole or in part, based on an individual's
3receipt of, or eligibility for, unemployment insurance benefits.
AB938,6,64 2. Increase the total amount of unemployment insurance benefits to which a
5claimant is entitled above what is provided under s. 108.06 (2), including by
6providing an increased overall benefit entitlement or additional weeks of benefits.
AB938,6,257 (b) 1. Whenever any benefit augmentation is provided for through an act of
8congress or by executive action of the president of the United States, the governor
9or other state agency or official shall notify the cochairpersons of the joint committee
10on finance, in writing, of the proposed benefit augmentation. The notice shall
11contain a detailed description of the proposed benefit augmentation, an affirmative
12statement that the proposed benefit augmentation complies with subd. 2., and, if the
13proposed benefit augmentation requires any contract or agreement with the federal
14government or any federal agency, a copy of the proposed contract or agreement if
15available. If the cochairpersons of the committee do not notify the governor, agency,
16or official that the committee has scheduled a meeting for the purpose of reviewing
17the proposed benefit augmentation within 14 working days after the date of the
18governor's, agency's, or official's notification, the benefit augmentation may, subject
19to subd. 2., be effectuated as proposed by the governor, agency, or official. If, within
2014 working days after the date of the governor's, agency's, or official's notification,
21the cochairpersons of the committee notify the governor, agency, or official that the
22committee has scheduled a meeting for the purpose of reviewing the proposed benefit
23augmentation, the benefit augmentation may not be effectuated without the
24approval of the committee. The committee may not approve a proposed benefit
25augmentation unless it complies with subd. 2.
AB938,7,2
12. No benefit augmentation may be effectuated unless it is subject to
2termination or cancellation by the joint committee on finance.
AB938,7,43 (c) This subsection does not apply with respect to federal extended benefits
4under s. 108.141.
AB938,3 5Section 3. 108.04 (2) (a) 4. of the statutes is renumbered 108.04 (2) (a) 4.
6(intro.) and amended to read:
AB938,7,87 108.04 (2) (a) 4. (intro.) If the claimant is claiming benefits for a week other
8than an initial week, the claimant provides does all of the following:
AB938,7,10 9a. Provides information or job application materials that are requested by the
10department and participates.
AB938,7,13 11b. Participates in a public employment office workshop or training program or
12in similar reemployment services that are required by the department under sub.
13(15) (a) 2.
AB938,4 14Section 4. 108.04 (2) (a) 4. d. of the statutes is created to read:
AB938,7,1715 108.04 (2) (a) 4. d. Registers with his or her local job center website or labor
16market exchange, if the claimant resides outside of this state. The department shall
17verify that each such claimant has complied with this subd. 4. d.
AB938,5 18Section 5. 108.04 (5) (b) of the statutes is amended to read:
AB938,8,319 108.04 (5) (b) Theft or unauthorized possession of an employer's property or,
20theft of an employer's
services with intent to deprive the employer of the property or
21services permanently
, theft or unauthorized distribution of an employer's
22confidential or proprietary information, use of an employer's credit card or other
23financial instrument for an unauthorized or nonbusiness purpose without prior
24approval from the employer
, theft of currency of any value, felonious conduct

1connected with an employee's employment with his or her employer, or intentional
2or negligent conduct by an employee that causes the destruction of an employer's
3records or
substantial damage to his or her an employer's property.
AB938,6 4Section 6. 108.04 (5) (e) (intro.) of the statutes is created to read:
AB938,8,55 108.04 (5) (e) (intro.) Any of the following:
AB938,7 6Section 7. 108.04 (5) (e) of the statutes is renumbered 108.04 (5) (e) 1. and
7amended to read:
AB938,8,178 108.04 (5) (e) 1. Absenteeism by an employee on more than 2 occasions within
9the 120-day period before the date of the employee's termination, unless otherwise
10specified by his or her employer
if the employee does not provide to his or her
11employer both notice and one or more valid reasons for the absenteeism. This
12subdivision does not apply if the employer has a reasonable policy that covers
13absenteeism described in subd. 2.
in an employment manual of which the employee
14has acknowledged receipt with his or her signature, or excessive tardiness by an
15employee in violation of a policy of the employer that has been communicated to the
16employee, if the employee does not provide to his or her employer both notice and one
17or more valid reasons for the absenteeism or tardiness
.
AB938,8 18Section 8. 108.04 (5) (e) 2. of the statutes is created to read:
AB938,8,2319 108.04 (5) (e) 2. A violation of an employer's reasonable policy that covers
20employee absenteeism, tardiness, or both, and that results in an employee's
21termination, if that termination is in accordance with that policy and the policy is
22specified by the employer in an employment manual of which the employee has
23acknowledged receipt with his or her signature.
AB938,9 24Section 9. 108.04 (5) (h) of the statutes is created to read:
AB938,9,6
1108.04 (5) (h) A violation by an employee of an employer's reasonable policy
2that covers the use of social media and is substantially related to the employee's
3employment, if the violation results in an employee's termination and if that
4termination is in accordance with that policy and the policy is specified by the
5employer in an employment manual of which the employee has acknowledged receipt
6with his or her signature.
AB938,10 7Section 10. 108.14 (10m) of the statutes is created to read:
AB938,9,108 108.14 (10m) The department shall implement identity proofing measures for
9claimants who are engaging in benefit-related transactions with the department
10that satisfy all of the following:
AB938,9,1311 (a) The measures require a claimant to verify his or her identity prior to filing
12an initial claim for benefits and when engaging in other transactions with the
13department.
AB938,9,1514 (b) The measures achieve the IAL2 and AAL2 standards adopted in the
15National Institute of Standards and Technology's Digital Identity Guidelines.
AB938,11 16Section 11. 108.14 (20) of the statutes is amended to read:
AB938,9,2117 108.14 (20) The department shall conduct random audits on claimants for
18benefits under this chapter to assess compliance with the work search requirements
19under s. 108.04 (2) (a) 3. The department shall conduct the audits required under
20this subsection at a level sufficient for the department to assess at least 50 percent
21of all work search actions reported to have been performed by claimants.
AB938,12 22Section 12. 108.14 (23m) of the statutes is created to read:
AB938,9,2423 108.14 (23m) The department shall provide training materials on the
24unemployment insurance system, including all of the following:
AB938,10,2
1(a) Training videos for claimants and employing units published on the
2department's Internet site.
AB938,10,43 (b) Quarterly, free, live training seminars for employing units. The seminars
4may be in-person, online, or both.
AB938,13 5Section 13. 108.14 (29) of the statutes is created to read:
AB938,10,86 108.14 (29) (a) The department shall maintain a call center to provide
7telephone assistance and support to claimants for benefits under this chapter or
8payments under federal assistance programs for unemployment.
AB938,10,119 (b) The department shall, during each of the following periods, extend the call
10center hours to include hours after 5 p.m. on weekdays and at least 16 hours on
11weekends:
AB938,10,1312 1. During a declared statewide emergency that causes or relates to an increase
13in unemployment claims.
AB938,10,1614 2. For 90 days after any week in which the call center experiences an increase
15of at least 300 percent in calls compared to the same week during the previous year,
16and for 90 days after each subsequent week in which such an increase occurs.
AB938,14 17Section 14. 108.14 (30) of the statutes is created to read:
AB938,10,2018 108.14 (30) (a) The department shall, on at least a weekly basis, perform a
19comparison of recipients of benefits under this chapter against all of the following for
20the purpose of detecting fraud or erroneous payments:
AB938,10,2221 1. Nationally recognized databases that contain information on death records,
22including the federal social security administration's death master file.
AB938,10,2323 2. The National Association of State Workforce Agencies' integrity data hub.
AB938,10,2524 3. The national directory of new hires maintained by the office of child support
25enforcement in the U.S. department of health and human services.
AB938,11,2
14. Prisoner databases maintained by the department of justice, the department
2of corrections, and the U.S. department of justice.
AB938,11,53 (b) The department may perform comparisons of recipients of benefits under
4this chapter against public or private databases other than those specified in par. (a)
51. to 4.
AB938,15 6Section 15 . Nonstatutory provisions.
AB938,11,117 (1) The department of workforce development shall submit a notice to the
8legislative reference bureau for publication in the Wisconsin Administrative
9Register when the department determines that the department has any rules in
10place that are necessary to implement the renumbering and amendment of s. 108.04
11(2) (a) 4. and the creation of s. 108.04 (2) (a) 4. d. by this act.
AB938,11,1912 (2) The legislative audit bureau shall conduct an audit of the department of
13workforce development's efforts to detect and prevent fraud and to recover
14overpayments that occurred as a result of fraud in the unemployment insurance
15program under ch. 108, the federal pandemic unemployment assistance program
16under 15 USC 9021, and the federal pandemic emergency unemployment
17compensation program under 15 USC 9025. The legislative audit bureau shall file
18a report on the audit conducted under this subsection in the manner described under
19s. 13.94 (1) (b).
AB938,11,2120 (3) (a) In this subsection, “allowable period” means the period described in par.
21(c).
AB938,12,722 (b) During the allowable period, the secretary of administration may transfer
23any employee to the department of workforce development from any other state
24agency to provide services for the department of workforce development that are
25needed to hear and decide appeals under s. 108.09 (4). Such an employee may,

1notwithstanding s. 108.09 (3) (a), serve as an appeal tribunal under ss. 108.09 to
2108.10, subject to approval of the secretary of workforce development. The
3department of workforce development shall pay all salary and fringe benefit costs of
4the employee during the time he or she is providing services for the department of
5workforce development. Any action by the secretary under this paragraph shall
6remain in effect until rescinded by the secretary or 90 days after the last day of the
7allowable period, whichever is earliest.
AB938,12,128 (c) A transfer under par. (b) may be made at any time during the period
9beginning on the effective date of this paragraph and ending on the 120th day after
10the effective date of this paragraph, except that the joint committee on finance may,
11upon request of the secretary of administration, extend the period by not more than
12an additional 120 days.
AB938,12,1713 (d) If an employee is transferred under par. (b), the department of workforce
14development may not increase the employee's salary at the time of transfer or during
15the time he or she is providing services for the department of workforce development,
16and the agency from which the employee was transferred may not increase the
17employee's salary at the time the employee returns to the agency.
AB938,12,2418 (e) The secretary of administration shall submit a report to the joint committee
19on finance, no later than the first day of the 2nd month beginning after the effective
20date of this paragraph and on the first day of each subsequent month during the
21allowable period, that provides information on all employee transfers under par. (b).
22Each report shall specify the number of employees transferred, the title of each
23employee transferred, the title the employee assumed at the department of
24workforce development, and the reasons for each employee transfer.
AB938,16 25Section 16 . Initial applicability.
AB938,13,3
1(1) The renumbering and amendment of s. 108.04 (2) (a) 4. and the creation of
2s. 108.04 (2) (a) 4. d. first apply with respect to weeks of unemployment beginning
3on the effective date of this subsection.
AB938,13,74 (2) The renumbering and amendment of s. 108.04 (5) (e), the amendment of s.
5108.04 (5) (b), and the creation of s. 108.04 (5) (e) (intro.) and 2. and (h) first apply
6with respect to determinations issued under s. 108.09 on the effective date of this
7subsection.
AB938,17 8Section 17. Effective dates. This act takes effect on the Sunday after
9publication, except as follows:
AB938,13,1310 (1) The renumbering and amendment of s. 108.04 (2) (a) 4. and the creation of
11s. 108.04 (2) (a) 4. d. and Section 16 (1 ) of this act take effect on the Sunday after the
12notice under Section 15 (1) of this act is published in the Wisconsin Administrative
13Register or on January 2, 2022, whichever occurs first.
AB938,13,1714 (2) The renumbering and amendment of s. 108.04 (5) (e), the amendment of s.
15108.04 (5) (b), and the creation of s. 108.04 (5) (e) (intro.) and 2. and (h) and Section
1616 (2 ) of this act take effect on January 2, 2022, or on the first Sunday after the 180th
17day after publication, whichever occurs later.
AB938,13,1818 (End)
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