The bill does the following:

1. Allows a covered individual whose claim for family or medical leave insurance benefits is denied by DWD to request a hearing on the denial and requires DWD to process the request for hearing in the same manner that requests for hearings on unemployment insurance claims are processed under current law.

2. Allows DWD to seek repayment of family or medical leave insurance benefits that are paid erroneously or as a result of willful misrepresentation in the same manner that DWD recovers erroneous payments of unemployment insurance benefits under current law or to waive recovery of an erroneous payment of those benefits if the erroneous payment was not the fault of the person who received it and if requiring repayment would be contrary to equity and good conscience.

3. Provides that if an individual willfully makes a false statement or representation, or willfully fails to disclose a material fact, to obtain family or medical leave insurance benefits, the individual is disqualified from receiving those benefits for one year after the date of the disqualification.

Finally, the bill allows a city, village, town, or county to enact and enforce ordinances requiring employers to provide leave from employment to their employees if those ordinances are more generous than those provided under state law.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

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:

SB596,1 Section 1. 20.445 (1) (w) of the statutes is created to read:

SB596,5,2 20.445 (1) (w) Family and medical leave insurance trust fund. From the family and medical leave insurance trust fund, all moneys deposited in that fund under s. 103.105 (8) for the payments of family or medical leave insurance benefits under s. 103.105 (3) (c) and for the administration of the family or medical leave insurance program under s. 103.105.

SB596,2 Section 2. 25.17 (1) (er) of the statutes is created to read:

SB596,5,4 25.17 (1) (er) Family and medical leave insurance trust fund (s. 25.52);

SB596,3 Section 3. 25.52 of the statutes is created to read:

SB596,5,9 25.52 Family and medical leave insurance trust fund. There is created a separate nonlapsible trust fund designated as the family and medical leave insurance trust fund, to consist of all moneys deposited in that fund under s. 103.105 (8).

SB596,4 Section 4 . 71.05 (6) (b) 54. of the statutes is created to read:

SB596,5,14 71.05 (6) (b) 54. For taxable years beginning after December 31, 2023, any amount of family or medical leave insurance benefits received by a covered individual, as defined in s. 103.105 (1) (d), in the taxable year to which the subtraction relates.

SB596,5 Section 5. 103.10 (1) (a) (intro.) of the statutes is renumbered 103.10 (1) (a) and amended to read:

SB596,5,18 103.10 (1) (a) “Child" means a natural, adopted, or foster child, a stepchild, or a legal ward to whom any of the following applies: .

SB596,6 Section 6. 103.10 (1) (a) 1. of the statutes is repealed.

SB596,7 Section 7. 103.10 (1) (a) 2. of the statutes is repealed.

SB596,8 Section 8 . 103.10 (1) (ap) of the statutes is created to read:

SB596,5,22 103.10 (1) (ap) “Covered active duty" means any of the following:

SB596,5,24 1. In the case of a member of a regular component of the U.S. armed forces, duty during the deployment of the member with the U.S. armed forces to a foreign country.

SB596,6,4 2. In the case of a member of a reserve component of the U.S. armed forces, duty during the deployment of the member with the U.S. armed forces to a foreign country under a call or order to active duty under a provision of law specified in 10 USC 101 (a) (13) (B).

SB596,9 Section 9. 103.10 (1) (b) of the statutes is amended to read:

SB596,6,9 103.10 (1) (b) Except as provided in sub. (1m) (b) 2. and s. 452.38, “employee" means an individual employed in this state by an employer, except the employer's parent child, spouse, domestic partner, or child parent, grandparent, grandchild, or sibling.

SB596,10 Section 10. 103.10 (1) (c) of the statutes is amended to read: