AB591: Bill Text

Under this component, the individual is considered an employe of the employer for purposes of worker's compensation coverage and receives minimum wage for each hour actually worked, not to exceed 40 hours per week.

Community service jobs

If the Wisconsin works agency determines that an individual is unable to obtain unsubsidized employment, and that a trial job is unavailable or inappropriate, the Wisconsin works agency may place the individual in a community service job. The community service job is one that DILJD determines would serve a useful public purpose or the cost of which is at least partially offset by the revenue generated by it. An individual may participate in any one community service job for a maximum of 6 months, with the opportunity for a 3-month extension under certain circumstances. An individual may participate in the community service job component for a maximum of 2 years, which may be extended if the Wisconsin works agency determines that local labor market conditions preclude a reasonable job opportunity in an unsubsidized job.

Under this component, the individual receives a grant equal to 75% of the minimum wage computed for one month of full-time employment. The grant is paid biweekly on a prorated basis. The Wisconsin works agency determines the number of hours the individual will be required to work, not to exceed 40 hours per week, based on criteria established by DILJD. For every hour that the individual fails to participate, his or her grant is reduced by an amount equal to 75% of the minimum wage computed for one hour.

Transitional placement

If the Wisconsin works agency determines that an individual has been incapacitated for a period of at least 60 days, is needed in the home because of the illness or incapacity of any other member of the Wisconsin works group or is incapable of performing a trial job or community service job, the Wisconsin works agency may place that individual in a transitional placement. The Wisconsin works agency is required to assign an individual participating in a transitional placement to a work activity. The Wisconsin works agency may require an individual participating in this component to participate in training or education programs; volunteer activities; counseling or physical rehabilitation activities; or alcohol and other drug abuse evaluation, assessment and treatment. An individual may participate in the transitional placement component for a maximum of 2 years, which may be extended under certain circumstances.

Under this component, the individual receives a monthly grant equal to 70% of the minimum wage computed for one month of full-time employment. The Wisconsin works agency determines the number of hours the individual will be required to work, not to exceed 40 hours per week, based on criteria established by DILJD. For every hour that the individual fails to participate, his or her grant is reduced by an amount equal to 70% of the minimum wage computed for one hour.

Job access loans

The bill permits individuals who meet the financial and nonfinancial eligibility criteria to receive a job access loan if the loan is needed to address an immediate and discrete financial crisis and the loan is needed to obtain or continue employment. The financial crisis may not be the result of the individual's failure to accept a bona fide offer of employment or the individual's termination of a job without good cause. To receive the loan, the individual may not be in default with respect to any previous job access loan or repayment of any wage or grant overpayment. Under the bill, under certain conditions, a custodial parent who is under the age of 18 may obtain a job access loan if he or she will be 18 within 2 months of applying for the loan.

Sanctions

An individual who refuses to participate 3 times in any Wisconsin works employment component is ineligible to participate in that component. The bill specifies several actions for which a person is considered to refuse to participate, including failing to appear for an interview, voluntarily leaving employment without good cause and losing employment as a result of being discharged for cause.

Supplemental security income

A custodial parent who receives supplemental security income is not eligible to participate in a Wisconsin works employment position. He or she is instead eligible to receive an additional $77 per month for each dependent child with respect to whom he or she is a custodial parent.

Health care coverage

Medical assistance

Under current federal law, states are required to provide health care coverage to persons who receive AFDC under the medical assistance (MA) program. In addition, states must provide MA to individuals who meet the requirements of AFDC but who do not actually receive AFDC. Pregnant women are eligible for MA if they meet the income and resource requirements of AFDC. Persons who are no longer eligible for AFDC payments because of an increase in their income are eligible for MA for 12 months after they lose eligibility for AFDC. Finally, children covered by adoption assistance agreements and children in foster care are eligible for MA. Certain other persons who are known as optional categorically eligible are covered by MA in this state. They include children who are under age 18 who would be eligible for AFDC if they met the definition of dependent child, but who are in privately subsidized foster care or live in institutions; and certain other children and pregnant women who meet certain income requirements.

Health care coverage under Wisconsin works

Under this bill, persons described above will no longer be eligible for MA. Instead, they are eligible for health care coverage under Wisconsin works, if they meet the income and resource limitations.

A Wisconsin works group (which includes an individual, the dependent children of the individual, the dependent children of the individual's dependent children, the individual's spouse, if the spouse lives with the individual, or the nonmarital parent of the dependent children, if that person lives with the individual) is eligible for health care benefits and services if the income of the group is at or below 165% of the federal poverty line, the group meets certain asset limitations and the individuals of the group meet certain nonfinancial criteria. If the group is already receiving benefits under the health care provisions, the group may continue to receive the benefits if the income of the group is at or below 200% of the federal poverty line. A person in the group who receives supplemental security income is eligible for MA, rather than coverage under Wisconsin works.

A pregnant woman with no dependent children is eligible for health care benefits and services if her income is at or below 165% of the federal poverty line and if she meets certain asset and nonfinancial criteria.

A custodial parent who is under the age of 18 (minor) and the minor's dependent children are eligible for health care benefits and services only if the minor meets either of the following criteria:

1. The minor lives with his or her custodial parent and the income of that parent is at or below 165% of the federal poverty line.

2. The minor is in a court-ordered out-of-home placement or a supported living arrangement supervised by an adult and has an income of 165% of the federal poverty line.

If the child of a minor does not live with the minor, but lives with a relative who is eligible for payments under the kinship care program (described below) with respect to that child, the child is eligible for MA, rather than health coverage under Wisconsin works.

Health plan

Under the bill, DHFS is required to contract with a health maintenance organization (HMO) or other health provider to provide services under the Wisconsin works health plan. The health plan includes coverage of the care and services required under current federal law under the MA provisions. The health care plan does not include the following:

1. Nonpreventive dental care.

2. Eyeglasses.

3. Hearing aids.

4. Home health, private duty nursing and personal care services in excess of 40 visits per year.

5. Nursing home services in excess of 30 days.

6. Over-the-counter drugs.

7. Treatment of nervous or mental disorders and alcoholism or other drug abuse problems in excess of the minimum coverage required under current law.

8. Other nonmanditory services currently covered by MA.

Individuals are required to pay a monthly premium for the Wisconsin works health plan in accordance with criteria established by DILJD and based on income, resources and family size.

No individual is eligible for health care coverage under Wisconsin works in a month that the individual is eligible for employer-subsidized health care coverage. Employer-subsidized health care coverage is coverage for which the employer pays at least 50% of the cost of coverage for the employe, excluding dependent coverage.

To be eligible for health care coverage under Wisconsin works, the individual may not have had access to employer-subsidized health care coverage within the 18 months immediately preceding application for health care coverage under Wisconsin works, unless the individual lost access to the employer-subsidized health care coverage because the employer terminated the employment for a reason other than misconduct on the part of the employe or the employe terminated the employment for just cause.

Child care subsidy

Low-income and at-risk child care; current law

Under current law, a parent who needs child care for a child under 13 years of age to be able to work, who is not receiving AFDC and who is at risk of becoming eligible for AFDC, is eligible for a subsidy for child care. A parent who receives the subsidy is liable for some portion of the cost of the child care received, payable on a sliding scale determined by DHSS. A parent who receives AFDC is also eligible for a child care subsidy if the cost of the child care exceeds the income disregard for child care. Finally, a parent who is gainfully employed who needs child care services and whose family income is not more than 75% of the state's median income is eligible for a child care subsidy and, if the parent's income is at least 50% of the state's median income, is liable for a portion of the child care costs. Currently, "gainfully employed" means working, seeking employment or participating in a training or educational program designed to lead directly to paid employment.

This bill makes several changes in the low-income and at-risk child care program. Under this bill, a parent who is gainfully employed and whose income is at or below 165% of the federal poverty line is eligible for a child care subsidy. Participation in a training and educational program does not qualify as being gainfully employed. All parents who receive a subsidy are liable for a portion of the cost of the child care on a sliding scale based on income and determined by DHSS. This bill also ends the low-income and at-risk child care program when Wisconsin works is implemented statewide.

Child care subsidy; Wisconsin works

Under Wisconsin works, a custodial parent of a child who is under the age of 10 is eligible for a child care subsidy if the parent is a member of a Wisconsin works group whose income is at or below 165% of the federal poverty line and if the child care is needed for the custodial parent to attend school as required under the learnfare program, work, seek work or, under specified circumstances, attend an employment training program approved by the Wisconsin works agency.

A person who, under kinship care, is providing care and maintenance for a child under the age of 10, who needs child care services to work, seek work or attend employment training approved by the Wisconsin works agency is also eligible for a child care subsidy.

Any person who receives a child care subsidy, is liable for a portion of the cost of the child care on a sliding scale based on income and determined by DILJD.

Transportation subsidy

Under the bill, the Wisconsin works agency determines eligibility, in accordance with rules promulgated by DILJD, for subsidies for transportation costs associated with transporting a child to and from a child care provider.

Wisconsin works agency contracts

This bill allows DILJD (or, before July 1, 1996, DHSS) to contract with a person to administer Wisconsin works. DILJD must award the contract on the basis of a competitive process that is approved by the department of administration (DOA); however, if DOA finds that it is in the best interest of the state to do so, DILJD may award the contract on the basis of a noncompetitive process. If no acceptable provider in a given geographical area is selected under either process, DILJD may administer Wisconsin works directly in that geographical area, or may require the county or counties that comprise that geographical area to administer Wisconsin works for up to 12 months succeeding the statewide implementation of the program. A county, in turn, may contract with any person to administer the program without going through a competitive process. Under current law, state contractual services contracts are supervised and administered by DOA or state agencies to which DOA delegates its authority. Currently, state contractual service contracts are subject to rules of DOA governing conflicts of interest and requirements concerning evaluations of contractors, and are subject to approval by the secretary of employment relations. DOA must report annually to the governor and legislature concerning contractual services procurements. The bill allows the secretary of DOA to exempt Wisconsin works contracts from these requirements. The bill also allows the secretary of DOA to exempt these contracts from preferences for certain procurements and from certain requirements relating to solid waste, recycling and historic preservation. Under the bill, Wisconsin works contracts are, however, subject to requirements for nondiscrimination in state contracting.

Under each contract, the Wisconsin works agency is required to establish a community steering committee to facilitate training and employment opportunities for participants. The Wisconsin works agency is also required to establish a children's services network to provide information about community services available to the children in a Wisconsin works group.

Other

Kinship care

Under current law, a parent or guardian may place a child in the home of a relative without the relative having to be licensed to operate a foster home. Currently, however, a relative who is providing care and maintenance for a child may request a license to operate a foster home for the child and, if the license is granted, may receive an age-related monthly foster care rate, plus supplemental payments, for the care and maintenance of the child.

This bill requires a county department of human services or social services (county department) to make payments, as determined by DHFS, to a relative of a child, other than the child's parent or stepparent, who is providing care and maintenance for the child (kinship care) if all of the following conditions apply:

1. The relative applies for kinship care payments and the county department determines that there is a need for the child to be placed with the relative and that the placement with the relative benefits the child.

2. The county department determines that the child meets one or more of the criteria under which a court assigned to exercise jurisdiction under the children's code (juvenile court) may exercise jurisdiction over a child in need of protection or services or that the child would be at risk of meeting one or more of those criteria if the child were to remain in his or her home.

3. The county department determines, through an assessment, that the child will be safe in the relative's home.

4. The county department conducts a background investigation of the relative and any other adult residing in the relative's home to determine if the relative or other adult has any arrests or convictions that could adversely affect the child or the relative's ability to care for the child.

5. The relative cooperates with the county department in the application process, including applying for other forms of assistance for which the relative may be eligible.

If a county department makes kinship care payments to a relative of a child, the county department must refer to the attorney responsible for child support enforcement the name of the child's parent or parents and require the parent or parents to initiate or continue health care insurance coverage for the child or, if the parent or parents are unable to do so, require the kinship care relative to initiate or continue that coverage. Under the bill, a relative who is receiving kinship care payments may not also receive foster care payments.

Under current law, if the court assigned to exercise jurisdiction under the children's code (juvenile court) terminates the parental rights of both of a child's parents or of a child's only living parent, the juvenile court may transfer guardianship and custody of the child pending adoptive placement to a relative of the child with whom the child resides, if the relative has filed a petition to adopt the child, or, if the juvenile court finds that it is unlikely that the child will be adopted or that adoption is not in the best interests of the child, the juvenile court may place the child under sustaining care in the home of a foster parent or treatment foster parent. This bill permits a juvenile court to place a child in the home of a kinship care relative pending adoption or to place a child under sustaining care in the home of a kinship relative.

Appropriations

This bill consolidates the state general purpose revenue appropriations for public assistance and local aids. Under the new appropriation, DILJD (or, before July 1, 1996, DHSS) must allocate specified amounts for specified purposes, such as income maintenance payments and low-income and at-risk child care subsidies. The department is permitted to use up to 30% of the money allocated for any one purpose under the appropriation for any other purpose under the appropriation.

Job opportunities and basic skills program

Under current law, certain recipients of AFDC are required to participate in the job opportunities and basic skills program (JOBS). JOBS has several components including work supplementation, in which participation is voluntary, and postsecondary education and vocational skills training. This bill makes participation in work supplementation mandatory. In addition, the bill eliminates postsecondary education and vocational skills training from the components of JOBS.

Currently, the department may require an eligible adult caretaker of a child who is at least one year old to participate full-time in JOBS. This bill requires DHSS to request a waiver to require an eligible adult caretaker of a child who is at least 12 weeks old to participate in JOBS full-time.

The community work experience program (CWEP) is a component of JOBS. Currently, no person may be required to work more than 32 hours per week in CWEP. With certain exceptions, no person may be required to work more than 16 weeks in CWEP in a 12-month period. This bill requires DHSS to seek a waiver to require persons to participate in CWEP up to 40 hours per week and up to 6 months in a 12-month period.

Food stamps

This bill permits DILJD to contract with a Wisconsin works agency to administer the food stamp program for recipients who are Wisconsin works employment position participants and for recipients who are eligible to participate in a Wisconsin works employment position, but do not participate. This bill allows DILJD, to the extent permitted by waiver or federal law, to require all able-bodied food stamp recipients aged 18 to 64, who are eligible to participate in a Wisconsin works employment position to participate in a Wisconsin works employment position instead of the food stamp employment and training program. The bill also allows the DILJD, to the extent permitted by federal law or waiver, to provide food stamps to recipients who are required to work on the basis of the number of hours worked. The number of hours that a recipient would be required to work would be determined by dividing the amount of food stamps received by the federal minimum wage. Every hour that the recipient failed to work would result in a reduction in food stamps in an amount equal to the federal minimum wage.

Tax

This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this 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:

AB591, s. 1 Section 1. 13.101 (6) (a) of the statutes is amended to read:

AB591,13,2 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, the university of Wisconsin system or to any other state agency or activity by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (bm), (cg) and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq) and (ar), 20.435 (4) (a), (d) (dz) and (e), (6) (a) and (7) (da) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

AB591, s. 2 Section 2. 13.101 (6) (a) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB591,13,23 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, the university of Wisconsin system or to any other state agency or activity by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (bm), (cg) and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax) and (6) (aq) and (ar), 20.435 (1) (c), (6) (a) and (7) (da) and 20.445 (3) (a) and (dz) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

AB591, s. 3 Section 3. 16.39 (4) (bm) of the statutes is created to read:

AB591,14,2 16.39 (4) (bm) A Wisconsin works group, as defined in s. 49.141 (1) (s), in which one member is a participant under s. 49.147 (3) to (5).

AB591, s. 4 Section 4. 16.75 (6) (bm) of the statutes is created to read:

AB591,14,11 16.75 (6) (bm) If the secretary determines that it is in the best interest of this state to do so, he or she may waive any requirement under subs. (1) to (5) with respect to any contract entered into by the department of industry, labor and job development under s. 49.143, if the department of industry, labor and job development presents the secretary with a process for the procurement of contracts under s. 49.143 and the secretary approves the process. The department of administration or its designated agent need not publish a class 2 notice under ch. 985 of its intent to award such a contract.

AB591, s. 5 Section 5. 16.75 (6) (bs) of the statutes is created to read:

AB591,14,14 16.75 (6) (bs) Subsections (1) to (5) do not apply to contracts entered into by a county under s. 49.143 (1) (b).

AB591, s. 6 Section 6. 16.841 (1) of the statutes is renumbered 16.841 (1) (intro.) and amended to read:

AB591,14,17 16.841 (1) (intro.) In this section, "agency":

AB591,14,18 (a) "Agency" has the meaning given in s. 16.70 (1).

AB591, s. 7 Section 7. 16.841 (1) (b) of the statutes is created to read:

AB591,14,21 16.841 (1) (b) "Child care provider" means a provider licensed under s. 48.65, certified under s. 48.651 or established or contracted for under s. 120.13 (14).