SB747: Bill Text

SB747,,1 2023 SENATE BILL 747

December 8, 2023 - Introduced by Senators Feyen, Ballweg, Cowles and Testin, cosponsored by Representatives Oldenburg, Petryk, Armstrong, Behnke, Callahan, Dittrich, Donovan, Edming, Goeben, Gundrum, Kitchens, Krug, Macco, Maxey, Melotik, Moses, Murphy, Mursau, Nedweski, Novak, O’Connor, Penterman, Rettinger, Schraa, Snyder, Tusler and VanderMeer. Referred to Committee on Economic Development and Technical Colleges.

SB747,,2 An Act to repeal 106.05 (1) (a) and 106.05 (2) (a) 2.; to renumber 106.05 (1) (b); to renumber and amend 38.04 (26), 106.273 (2) (b) and 118.34 (1); to consolidate, renumber and amend 106.05 (2) (a) (intro.) and 1.; to amend 106.05 (title), 106.05 (2) (b) (intro.), 106.05 (2) (c), 106.05 (3) (a), 106.05 (3) (b) (intro.) and 118.52 (6) (b); and to create 38.04 (26) (b), 38.40 (2g), 71.07 (11), 71.10 (4) (eb), 106.01 (3), 106.05 (1) (e) and (f), 106.05 (1) (v), 106.05 (2m), 106.273 (2) (b) 1. and 118.34 (1) (c) of the statutes; relating to: apprenticeship and youth apprenticeship completion awards, career and technical education incentive grants and completion awards, technical preparation programs in school districts and technical colleges, creating an individual income tax credit for completing an apprenticeship program, rejection criteria for part-time open enrollment applications, extending the time limit for emergency rule procedures, and providing an exemption from emergency rule procedures.

SB747,,3 Analysis by the Legislative Reference Bureau

Apprenticeship and youth apprenticeship

Under current law, any person 16 years of age or older may enter into an apprenticeship, which is a contract whereby the person (apprentice) receives from his or her employer in consideration for the apprentice’s services, instruction in any trade, craft, or business. That instruction may include related classroom instruction. Apprenticeship programs are operated by sponsors and approved by the Department of Workforce Development. In some cases, the sponsor of an apprenticeship program is the employer, while in other cases, apprenticeship programs are operated by other types of sponsors, such as apprenticeship committees. Current law also provides for a youth apprenticeship program, under which DWD develops curricula for several specified occupational areas. As established by DWD, a youth apprenticeship is available to high school pupils and consists of work for an employer and related classroom instruction. The apprenticeship and youth apprenticeship programs are administered by DWD. This bill makes various changes related to apprenticeships and youth apprenticeships, including the following:

Skilled wage rate

Under DWD’s current apprenticeship rules, an apprentice contract wage scale is deemed adequate when, during the term of training, it averages 60 percent of the current journeyworker rate or skilled wage rate. The skilled wage rate is therefore used to determine what constitutes an adequate wage scale for apprentices. For apprentices in construction who are not covered under a collective bargaining agreement, the skilled wage rate is the rate average, calculated as the mean, based on the geographical area of the appropriate local apprenticeship committee. For apprentices in other (nonconstruction) industry sectors who are not covered under a collective bargaining agreement, the skilled wage rate is the rate paid to the greatest number of competent journeyworkers in like establishments in the community or another rate deemed adequate by DWD. The rate for apprentices who are covered under a collective bargaining agreement is determined by the agreement.

The bill provides that the skilled wage rate for apprentices in all industries who are not covered under a collective bargaining agreement is the average rate paid to competent journeyworkers in like establishments in the area, as determined by the sponsor. The bill maintains the wage scale requirement described above and the requirement that, in determining the skilled wage rate for apprentices whose employment is governed by a collective bargaining agreement, the rate specified in the collective bargaining agreement applies.

Apprenticeship completion awards

Current law provides for an apprenticeship completion award program (ACAP), administered by DWD, under which apprentices and their sponsors may receive reimbursement for tuition costs charged to an apprentice to participate in the classroom instruction for the apprenticeship. Apprenticeship completion awards are limited to 25 percent of the cost of tuition incurred by the apprentice or sponsor or $1,000, whichever is less, except that DWD may, if funding is not available to fully fund awards, reduce the reimbursement percentage or deny applications for completion awards that would otherwise qualify. The bill does all of the following with respect to the ACAP:

1. Expands the ACAP to allow reimbursement for additional costs.

2. Eliminates the availability of apprenticeship sponsors to receive reimbursements under the ACAP. Under the bill, therefore, only apprentices may receive reimbursement for costs under the ACAP.

3. Creates a youth apprenticeship completion award program (YACAP) under which youth apprentices may receive reimbursement for various specified costs. Youth apprenticeship completion awards are limited to 25 percent of eligible costs incurred by the youth apprentice or $500, whichever is less, for a given year of youth apprenticeship, subject to a maximum of two awards for a total maximum of $1,000, except that DWD may reduce the reimbursement percentage or deny applications as under current law for the ACAP. The YACAP is limited to youth apprenticeships in the area of architecture and construction.

Apprenticeship tax credit

The bill allows an individual enrolled in an apprenticeship program to claim an income tax credit of $500 for the taxable year in which the individual completes the program.

High school education—courses and programming

Career and technical education incentive grants and completion awards

Current law requires DWD to annually confer with the Department of Public Instruction and the Technical College System to identify industries and occupations within this state that face workforce shortages or shortages of adequately trained, entry-level workers. DWD is required to approve industry-recognized certification programs designed to 1) mitigate workforce shortages in the aforementioned industries and occupations and 2) prepare individuals for occupations as fire fighters, emergency medical responders, or emergency medical services practitioners. Current law also requires DWD to award incentive grants to school districts with these industry-recognized certification programs and requires DWD to annually award completion awards to students in the amount of $500 for each industry-recognized certification program approved by DWD to prepare individuals for occupations as fire fighters, emergency medical responders, or emergency medical services practitioners. The bill adds programs in construction work to the list of industry-recognized certification programs for which DWD must approve programs. This change applies for purposes of eligibility for both the incentive grants available to school districts and the completion awards available to students.

Apprenticeship courses and technical preparation programs

Current law requires each school board, in cooperation with a technical college district board, to establish a technical preparation program in each public high school in the school district. The program must consist of a sequence of courses, approved by the Technical College System Board, designed to allow high school pupils to gain advanced standing in the technical college district’s associate degree program upon graduation from high school. The TCS Board must annually publish a list of these approved courses that indicates the schools in which each course is taught and the credit equivalency available in each technical college district for each course. There is also a separate statutory requirement that the TCS Board provide a technical preparation program that includes the school district technical preparation program and further requires the TCS Board to plan, coordinate, administer, and implement its technical preparation program.

Under the bill, the TCS Board must annually publish a list of courses offered to high school students that meet all of the following criteria: 1) the course is offered to adults in an approved apprenticeship program; 2) the course has a technical college district course number; and 3) the course is taught by school district faculty, by technical college faculty, or by industry professionals who teach the course to adults in an approved apprenticeship program (TCS-listed apprenticeship courses). The TCS Board must facilitate dual enrollment programs between school boards and technical college district boards for TCS-listed apprenticeship courses and must ensure that an individual’s successful completion of a TCS-listed apprenticeship course allows the individual to receive technical college course credit while in high school. These TCS-listed apprenticeship courses must also be included in the TCS Board’s and school district’s technical preparation programs.

Part-time open enrollment; undue financial burden

Currently, under the part-time open enrollment program, a pupil enrolled in grades nine to 12 in a public school may attend public school in a school district other than the pupil’s resident school district (a nonresident school district) to take up to two courses offered by the nonresident school district. Current law requires a pupil’s resident school district to pay the nonresident school district an amount equal to the cost of providing the course to the pupil, as determined by the Department of Public Instruction. Under current law, a pupil’s resident school board may prohibit the pupil from attending a course in a nonresident school district if the cost of the course would impose an undue financial burden on the school district. The bill specifies that, when making a determination about whether a course imposes an undue financial burden, a school district must use a consistent methodology that does not consider the content of the course and evaluate whether paying the cost of the course will impair the school district’s operations.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

SB747,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB747,1 Section 1. 38.04 (26) of the statutes is renumbered 38.04 (26) (intro.) and amended to read:

SB747,,6 38.04 (26) Technical preparation programs. (intro.) In consultation with the state superintendent of public instruction, the board shall approve courses for technical preparation programs under s. 118.34 (1) (b). By July 1, 1994, and annually thereafter Annually by July 1, the board shall publish a list of the all of the following:

SB747,,7 (a) The approved courses that indicates under s. 118.34 (1) (b), indicating the high schools in which each course is taught and the credit equivalency available in each technical college district for each course.

SB747,2 Section 2. 38.04 (26) (b) of the statutes is created to read:

SB747,,9 38.04 (26) (b) Courses offered to high school students that meet all of the following criteria:

SB747,,10 1. The course is offered to adults in an approved apprenticeship program, as defined in s. 106.001 (4).

SB747,,11 2. The course has a technical college district course number.

SB747,,12 3. The course is taught by school district faculty, by technical college faculty, or by industry professionals who teach the course to adults in an approved apprenticeship program, as defined in s. 106.001 (4).

SB747,3 Section 3. 38.40 (2g) of the statutes is created to read:

SB747,,14 38.40 (2g) Apprenticeship courses. (a) In this subsection, “apprenticeship courses” means those courses identified under s. 38.04 (26) (b).

SB747,,15 (b) The board shall facilitate dual enrollment programs between school boards and technical college district boards for apprenticeship courses.

SB747,,16 (c) The board shall ensure that an individual’s successful completion of an apprenticeship course allows the individual to receive technical college course credit while in high school.

SB747,4 Section 4. 71.07 (11) of the statutes is created to read:

SB747,,18 71.07 (11) Eligible apprenticeship expenses credit. (a) Definitions. In this subsection:

SB747,,19 1. “Apprentice” has the meaning given in s. 106.001 (1).

SB747,,20 2. “Apprenticeship program” has the meaning given in s. 106.001 (4).

SB747,,21 3. “Claimant” means an individual who is an apprentice enrolled in an apprenticeship program and who files a claim under this subsection.

SB747,,22 (b) Filing claims. For taxable years beginning after December 31, 2023, and subject to the limitations under this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 $500 for the taxable year in which the claimant successfully completes an apprenticeship program.

SB747,,23 (c) Limitations. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB747,,24 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

SB747,5 Section 5. 71.10 (4) (eb) of the statutes is created to read:

SB747,,26 71.10 (4) (eb) Eligible apprenticeship expenses credit under s. 71.07 (11).

SB747,6 Section 6. 106.01 (3) of the statutes is created to read:

SB747,,28 106.01 (3) Skilled wage rate. (a) An apprentice contract wage scale shall be deemed adequate when, during the term of training, it averages 60 percent of the current journeyworker rate or skilled wage rate. The apprentice contract shall provide for a graduated scale, progressing in periods as approved by the department.

SB747,,29 (b) In determining the journeyworker or skilled wage rate under par. (a), for all industries:

SB747,,30 1. For apprentices whose employment is governed by a collective bargaining agreement, the rate specified in the collective bargaining agreement applies.

SB747,,31 2. For apprentices whose employment is not governed by a collective bargaining agreement, the skilled wage rate is the average rate paid to competent journeyworkers in like establishments in the area, as determined by the sponsor.

SB747,7 Section 7. 106.05 (title) of the statutes is amended to read: