LRB-2453/2
GM/PK/TF/PG/TY/JS:kaf:jf
1997 - 1998 LEGISLATURE
May 27, 1997 - Introduced by Representatives R. Potter, Robson, Hanson, Riley,
Wasserman, Springer, Boyle, Ryba, Turner, Bock, Plouff, Notestein, Black,
Carpenter, Hasenohrl, La Fave, Morris-Tatum, Coggs, Cullen, Baumgart,
Baldwin
and L. Young, cosponsored by Senators Risser, Clausing, Plache,
Burke, George
and Moore. Referred to Joint committee on Finance.
AB388,2,3 1An Act to repeal 49.132 (1) (cm), 49.132 (4) (am), 49.155 (1m) (a) 4. a. and 49.155
2(1m) (a) 4. b.; to renumber and amend 49.155 (1m) (a) 4. (intro.); to amend
348.651 (1) (a), 48.651 (1) (b), 49.131 (2) (c) 2., 49.132 (1) (ag), 49.132 (1) (b),
449.132 (2r) (b), 49.132 (4) (a) 2., 49.132 (4) (a) 3., 49.132 (4) (b), 49.136 (7) (a),
549.137 (6), 49.143 (2) (a) 8., 49.148 (1m) (a), 49.155 (1m) (c), 49.155 (5), 71.05
6(6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2) (a) 10.
7and 77.92 (4); to repeal and recreate 20.235 (title); and to create 20.235 (1)
8(cw), 20.445 (3) (ct), 39.385, 49.132 (1) (d), 49.132 (2m) (d) 3., 49.132 (3) (d),
949.135, 49.137 (4) (gm), 49.137 (6) (a), 49.325 (4), 71.07 (7g), 71.10 (4) (gc), 71.28
10(7), 71.30 (3) (ea), 71.47 (7) and 71.49 (1) (ea) of the statutes; relating to: the
11child care worker loan repayment assistance program; early childhood councils;
12requiring recipients of child care funding to have received training in child
13development and safety; training and network development for special needs
14child care providers; eligibility for low-income child care funding recipients; a

1tax credit for employers who provide child care; funding for child care resource
2and referral services; granting rule-making authority; and making
3appropriations.
Analysis by the Legislative Reference Bureau
This bill makes various changes relating to child care.
Early childhood councils
The bill requires the department of industry, labor and job development
(DILJD) to provide grants to public agencies or nonprofit organizations for the
establishment of local early childhood councils. Membership on a local early
childhood council is open to all persons and organizations in the community with a
demonstrated interest in or knowledge of child care, early childhood education or
other services for young children and their families. A local early childhood council
must include parents, child care providers, an elected county official and one or more
representatives of a local employer, the local school district, the county department
of human services or social services (county department), the local health
department and a local child care resource and referral agency. A local early
childhood council must do all of the following:
1. Conduct an assessment of child care and early childhood education programs
and other services for young children and their families that are available in the
community and an assessment of the need for those programs and services in the
community.
2. Develop a plan to increase the supply and accessibility of high-quality child
care and early childhood education programs in the community; foster coordination
and communication between appropriate individuals and organizations in the
community to maximize the accessibility and quality of, and to minimize duplication
in, the programs and services that are available in the community for young children
and their families; and promote and increase public awareness of the characteristics
and importance of high-quality child care and early childhood education for young
children.
3. Advise the county department on the development of the county's proposed
budget for the expenditure of child care funding.
Child development and safety training
Under current law, DILJD distributes general purpose revenues, as community
aids, and federal child care grant moneys to counties for child care services for
parents who are gainfully employed and who need child care services in order to work
(low-income child care) and for parents who need child care to be able to work, who
are not receiving aid to families with dependent children (AFDC) and who are at risk
of becoming eligible for AFDC, which is defined as having a family income that is
equal to or less than 75% of the state median income (at-risk child care). Under
current law, DILJD also administers various child care grant programs including a
child care start-up and expansion grant program and a child care quality

improvement grant program. This bill requires a person and all employes of that
person who provide care and supervision for children to have received not less than
20 hours of training in child care and development before that person may receive
funding for providing at-risk or low-income child care or a child care start-up and
expansion grant or a child care quality improvement grant.
Special needs child care
Under current law, DILJD may contract with agencies for the provision of
training and technical assistance to improve the quality of child care in this state.
Currently, the training and technical assistance activities contracted for by DILJD
may include certain activities specified in the statutes, including developing
resources to provide child care in a generic setting for children with special needs.
This bill permits the training and technical assistance activities contracted for by
DILJD to include providing training to child care providers in providing child care
for children with special needs and developing a network of child providers who are
qualified to provide child care for children with special needs.
Eligibility for low-income and at-risk child care funding
Under current law, to be eligible to receive low-income child care funding, a
person must be gainfully employed, which is defined as working or seeking
employment, except that a person under 20 years of age is eligible if that person is
enrolled in an educational program. Also, under current law, priority for low-income
child care funding goes to persons whose family income is less than 165% of the
poverty line. This bill expands eligibility for low-income child care to persons of all
ages who are participating in a training or education program that is designed to lead
directly to paid employment. The bill also raises the eligibility threshold for at-risk
child care and the priority threshold for low-income child care to 85% of the state
median income.
Child care copayment requirement
Under current law, a parent who receives at-risk or low-income child care
funding must make copayments for the cost of child care received, in accordance with
a sliding scale formula provided by DILJD that is based on the parent's ability to pay.
This bill directs DILJD, in providing that sliding scale formula, not to require any
parent to pay more than 10% of his or her family income for the cost of child care
received.
Child care worker loan repayment assistance
This bill creates a child care worker loan repayment assistance program.
Under the program, a child care worker is reimbursed for 10% of the outstanding
principal amount of educational loans of the child care worker or $1,000, whichever
is less, if all of the following apply:
1. The child care worker has been continuously employed full-time in this state
as a child care worker for not less than 12 months.
2. The child care worker graduated on or after May 1, 1996, with a degree in an
area relating to early childhood education.
3. The child care worker is currently in repayment on any educational loan and
is not in default on repayment.

After initial reimbursement under the program, a child care worker is eligible
for additional loan repayment assistance payments, up to a maximum of 4 additional
reimbursements, in the same manner as initial reimbursement under the program.
Child care resource and referral services
Under current law, DILJD is required to distribute, from federal child care and
development block grant (CCDBG) moneys received, $96,000 in each of fiscal years
1995-96 and 1996-97 for grants for child care resource and referral services. This
bill directs (DILJD) to distribute, from federal CCDBG moneys received, $1,781,000
in fiscal year 1997-98 and $1,870,000 in fiscal year 1998-99 for grants for child care
resource and referral services.
Wisconsin works child care
Under current law, to be eligible for child care assistance under the Wisconsin
works (W-2) program, an individual must have an income of no more than 165% of
the federal poverty level. Also, the child care must be needed in order for the
individual to do any of the following:
1. Meet the school attendance requirement under the learnfare program.
2. Work in an unsubsidized job, including training provided by an employer
during the regular hours of employment.
3. Work in a W-2 employment position, including required participation in
education or training activities.
4. Participate in other employment skills training, including an English as a
2nd language course, if the W-2 agency determines that the course would facilitate
the individual's efforts to obtain employment; a course of study meeting the
standards established by the secretary of education for the granting of a declaration
of equivalency of high school graduation; a course of study at a technical college; or
participation in educational courses that provide an employment skill, as
determined by DILJD.
An individual may receive aid to participate in other employment skills
training for up to one year and only if the individual meets at least one of the
following conditions:
1. The individual has been employed in unsubsidized employment for 9
consecutive months and continues to be so employed.
2. The individual is a participant in a W-2 employment position.
This bill expands eligibility for child care assistance under W-2 to individuals
who are participating in other employment skills training regardless of whether they
are currently employed. The bill also raises the financial eligibility threshold from
165% of the federal poverty level to 85% of the state median income.
Other Wisconsin works
Currently, an eligible custodial parent of a child who is 12 weeks old or less may
receive a monthly grant of $555 without being required to participate in any
employment positions. This bill increases the permissible age of the child to one year.
Tax credits
Finally, the bill creates an income tax and franchise tax credit for 5% of child
care costs, up to a maximum annual credit of $15,000. The expenses that may be

counted in calculating the credit are those of acquiring, constructing and
rehabilitating child care facilities; operating costs of day care facilities; and amounts
paid under a contract for child care services for the claimant's employes.
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:
AB388, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
AB388, s. 2 3Section 2. 20.235 (title) of the statutes is repealed and recreated to read:
AB388,5,4 420.235 (title) Higher educational aid programs.
AB388, s. 3 5Section 3. 20.235 (1) (cw) of the statutes is created to read:
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