SB199: Bill Text

LRB-2939/2

GM/JK/TF/TY/MS:wlj:mrc

1999 - 2000 LEGISLATURE

1999 Senate BILL 199

June 17, 1999 - Introduced by Senators Risser, Darling, Plache, Rosenzweig, Erpenbach, George and Breske, cosponsored by Representatives Hasenohrl, Black, Boyle, Pocan, Bock, Reynolds, Turner, Miller, Berceau, Plale, Plouff, Young and Lassa. Referred to Committee on Human Services and Aging.

SB199,2,7 An Act to repeal 49.155 (1m) (a) 4. a., 49.155 (1m) (a) 4. b., 49.155 (1m) (c) 1m., 49.155 (1m) (c) 2. and 49.155 (1m) (c) 3.; to renumber 49.137 (6); to renumber and amend 49.155 (1m) (a) 4. (intro.) and 49.665 (1) (c); to amend 20.435 (5) (bc), 20.435 (5) (jz), 20.435 (5) (o), 20.435 (5) (p), 20.445 (3) (cm), 49.136 (7) (a), 49.143 (2) (a) 8., 49.148 (1m) (a), 49.155 (1d) (a), 49.155 (1m) (intro.), 49.155 (1m) (a) (intro.), 49.155 (1m) (c) 1., 49.155 (1m) (c) 1g., 49.155 (1m) (c) 1h., 49.155 (3m) (a), 49.155 (5), 49.665 (3), 49.665 (4) (b), 49.665 (4) (c), 49.665 (5), 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26 (2) (a), 71.30 (3) (f), 71.34 (1) (g), 71.45 (2) (a) 10., 71.49 (1) (f) and 77.92 (4); and to create 20.235 (1) (cw), 20.445 (3) (ct), 39.385, 49.135, 49.137 (6) (a), 49.139, 49.155 (1) (aL), 49.155 (1g) (d), 49.325 (4), 49.665 (1) (bq), 49.665 (1) (c) 2., 49.665 (4) (am), 71.07 (5d), 71.07 (6m), 71.07 (7g), 71.10 (4) (cm), 71.10 (4) (gc), 71.28 (5d), 71.28 (7), 71.30 (3) (ea), 71.47 (5d), 71.47 (7) and 71.49 (1) (ea) of the statutes; relating to: a child care worker loan repayment assistance program; a child care career education scholarship program; early childhood councils; requiring recipients of child care funding to have received training in child development and safety; training and network development for special needs child care providers; eligibility for child care funding; health care for low-income child care workers; creating tax credits for employers who provide child care; creating a nonrefundable individual income tax credit for certain expenses related to child or dependent care; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill makes various changes relating to child care.

Early childhood councils

The bill requires the department of workforce development (DWD) 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, DWD must reimburse child care providers or must distribute funds to county departments for child care services provided for persons who are eligible for child care assistance under the Wisconsin works (W-2) program. Under current law, DWD 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 child care under the W-2 program or a child care start-up and expansion grant or a child care quality improvement grant.

Child care worker loan repayment assistance

This bill creates a child care worker loan repayment assistance program to be administered by the higher educational aids board (HEAB). Under the program, a child care worker is initially reimbursed by HEAB for ten percent 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, 1999, with a degree in an area relating to early childhood education.

3. The child care worker is currently repaying 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 from HEAB, up to a maximum of four additional reimbursements, in the same manner as initial reimbursement under the program.

Child care career education scholarships

This bill creates a child care career education scholarship program to be administered by DWD or by an agency contracted by DWD to administer that program. Under the program, DWD may award scholarships of not less than $500 nor more than $5,000 per year to individuals who are child care providers and to individuals who are employed by a child care provider or by a head start agency in the direct provision of child care services or in the administration of child care services to enable those individuals to earn associate degrees, bachelor's degrees or other credentials approved by DWD in the fields of child care or early childhood education. Under the program, DWD, a scholarship recipient and, if applicable, the scholarship recipient's employer must enter into a contract specifying the commitments of each party to the contract. The contract must include the amount of the scholarship, which, subject to the $5,000 maximum scholarship limit, may cover up to 100% of the cost of the scholarship recipient's books and tuition and which, subject to that limit, may provide for not more than three hours per week of paid leave from work to study or attend classes; the number of credits the scholarship recipient will take during the time period of the contract; a commitment by the scholarship recipient's employer to provide a pay raise or bonus to the recipient upon completion of his or her course of study and the amount of that pay raise or bonus or, if the scholarship recipient is an individual who is a child care provider, a commitment by DWD to pay a bonus to the individual upon completion of his or her course of study and the amount of that bonus; and a commitment by the scholarship recipient not to resign from employment with the child care provider or head start agency that employed him or her during the time period of the contract for not less than six months nor more than one year after the end of that period as specified in the contract or, if the scholarship recipient is an individual who is a child care provider, to remain a child care provider for not less than six months nor more than one year after the end of the time period of the contract as specified in the contract.

Badger care for child care workers

Currently, under the badger care program, families with incomes below 185% of the federal poverty line who meet certain criteria are eligible for partially or wholly subsidized coverage of the same health services and benefits offered under the medical assistance program. "Family" is defined as at least one dependent child and his or her custodial parent or parents.

This bill expands the badger care program to cover individuals who are child care workers who meet the income and nonfinancial eligibility requirements. Under the bill, child care workers need not be parents to qualify for the health care coverage.

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, 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 formula specified by DWD.

Finally, an individual may receive child care funding to participate in certain employment skills training, including an English as a second 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 DWD. An individual may receive funding for that purpose 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 nine 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 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. Additionally, the bill directs DWD to develop a sliding scale formula for child care copayments based on an individual's ability. Under the bill, DWD may not require any parent to pay more than ten percent of his or her family income for the cost of child care received.

The bill also changes the annual general program revenue for paying child care subsidies to a continuing appropriation.

Other Wisconsin works

Currently, an eligible custodial parent of a child who is 12 weeks old or less may receive a monthly grant of $673 without being required to work. This bill increases the permissible age of the child to one year.

Tax credits

This bill creates an income tax and franchise tax credit for a corporation that constructs and equips a day care center or pays a day care center to care for the children of the corporation's employes during the employes' working hours. Sole proprietorships, corporations and insurers may claim the credit. Partnerships, limited liability companies and tax-option corporations compute the credit but pass it on to the partners, members and shareholders in proportion to their ownership interests.

The credit is an amount equal to 50% of the amount paid by the corporation during a taxable year to construct and equip a day care center that is owned and operated by the corporation or an amount equal to 50% of the amount paid by the corporation during a taxable year to a day care center to care for the children of the corporation's employes during the employes' working hours. A corporation may also claim a credit equal to $50 a month for each child of a corporation's employe enrolled in the corporation's day care center for a taxable year.

If the credit claimed by a corporation exceeds the corporation's tax liability, the state will not issue a refund check, but the corporation may carry forward any remaining credit to the next five taxable years. If a day care center that is constructed and equipped by a corporation ceases its operation within five years from the date that construction of the day care center was completed, the corporation must pay back the credit received in proportion to the period of time that the day care center operated.

Finally, the bill creates an income tax and franchise tax credit for five percent 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.

Under current federal law there is an individual income tax credit for a portion of qualifying child or dependent care expenses that are paid for the purpose of enabling a taxpayer to be gainfully employed. An eligible claimant must maintain a household for a "qualifying individual", which is defined as a dependent under the age of 13, a disabled spouse or another disabled individual who is a dependent of the taxpayer. The federal credit is nonrefundable, meaning that no refund is paid if the amount of the credit exceeds the taxpayer's tax liability. The maximum credit is $720 if the taxpayer has one qualifying individual or $1,440 if the taxpayer has more than one qualifying individual.

This bill creates a nonrefundable individual income tax credit that is equal to 50% of the amount that is claimed by an individual under this federal credit.

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:

SB199, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB199, s. 2 Section 2. 20.235 (1) (cw) of the statutes is created to read:

SB199,6,6 20.235 (1) (cw) Child care worker loan repayment assistance. Biennially, the amounts in the schedule for the child care worker loan repayment assistance program under s. 39.385.

SB199, s. 3 Section 3. 20.435 (5) (bc) of the statutes is amended to read:

SB199,6,11 20.435 (5) (bc) Health care for low-income families and eligible individuals. As a continuing appropriation, the amounts in the schedule A sum sufficient for the badger care health care program for low-income families and eligible individuals under s. 49.665.