AB557: Bill Text

LRB-3897/2

GMM/JK/PG/ML/PK:cjs:pg

2001 - 2002 LEGISLATURE

2001 Assembly BILL 557

October 10, 2001 - Introduced by Labor and Workforce Development. Referred to Committee on Labor and Workforce Development.

AB557,1,11 An Act to amend 20.445 (3) (md), 49.1475, 71.05 (6) (a) 15., 71.08 (1) (intro.), 71.21 (4), 71.26 (2) (a), 71.28 (1dx) (b) 1., 71.34 (1) (g), 71.45 (2) (a) 10., 77.92 (4) and 560.797 (4) (f); and to create 15.227 (14), 20.292 (1) (kd), 20.445 (1) (d), 38.34, 49.175 (1) (zp), 71.07 (5v), 71.10 (4) (k), 71.28 (1dx) (b) 1m., 71.28 (1dx) (f), 71.28 (5v), 71.30 (3) (g), 71.47 (5v), 71.49 (1) (g), 106.01 (12), 106.01 (13), 106.28 and 560.157 of the statutes; relating to: productivity enhancement training and development zone tax credits; a workplace diversity grant program, a job retention skills development program, preapprenticeship basic skills training, and an apprenticeship marketing program; providing an exemption from emergency rule procedures; granting rule-making authority; and making appropriations.

Analysis by the Legislative Reference Bureau

This bill creates a productivity enhancement training tax credit and makes certain changes relating to development zone tax credits. The bill also creates several workforce training and education programs. Specifically, the bill does all of the following:

1. Productivity Enhancement Training Tax Credit. Creates a nonrefundable business tax credit for expenses incurred by a business in providing the business's employees training to increase their productivity and to promote or create high-wage, high-skill jobs. The credit equals 100% of the business's training expenses as certified by the department of commerce, up to a maximum of $7,500 per year. Eligible training expenses include up to $2,000 incurred for pre-training assessment and consultation services. The credit may not be claimed for amounts deducted by the business under the Internal Revenue Code as ordinary and necessary business expenses. Unused credits may be carried forward for up to 15 years. Under the bill, 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.

To qualify for the credit, the department of commerce must certify the business's productivity enhancement training expenses. To be eligible to have its expenses certified, the business must submit to the department of commerce a productivity enhancement training plan that provides for training that will increase employee productivity and result in employees holding jobs in the business that require higher degrees of skill to perform and that pay higher wages than their current jobs, must receive pre-training needs assessment and consultation from an experienced provider of productivity assessments, as approved by the department of commerce, and must submit an accounting of its productivity enhancement training expenses so that the department of commerce may determine if the expenses were incurred under the training plan.

Each business that has its expenses certified and that claims the tax credit must report to the department of commerce, by March 1 of the year after the business receives the certification, on the results of its productivity enhancement training and on its success in meeting the goals established in its productivity enhancement training plan. The department of commerce is required to report to the legislature by December 1 annually on the effectiveness of the productivity enhancement training certification and tax credit program.

The tax credit is available for taxable years beginning after December 31, 2001. No business may be certified for tax credits for any taxable year beginning after December 31, 2010.

2. Development Zone Tax Credits. Provides that any person who is eligible to claim an income tax credit for environmental remediation expenses incurred in a development zone may transfer the right to claim the credit to any other person subject to taxation in this state. In addition, the bill provides that a person may claim a credit for 50% of the amount expended by a municipality or a tax-exempt or nonprofit organization for environmental remediation in a development zone, if the municipality or organization has entered into an exclusive written agreement with the person claiming the credit. The bill requires the department of revenue to promulgate rules implementing the credit transfer provisions. Currently, a person may claim an income tax credit for up to 50% of the person's environmental remediation expenses in a development zone, but may not transfer the right to claim the credit to any other person. Current law also does not permit a municipality or nonprofit organization to claim an environmental remediation tax credit.

3. Workplace Diversity Grant Program. Creates a workplace diversity grant program administered by the department of workforce development (DWD), under which local, nonprofit organizations that offer diversity training, basic employment skills development, or instruction in English as a second language to employees and to persons seeking employment may require grants for the operation of those activities. A local, nonprofit organization is qualified for a grant if the governing body of the local, nonprofit organization is comprised of representatives of private sector employers and local government units or agencies, and the local, nonprofit organization assists local employers in meeting their workforce needs; the local, nonprofit organization assists persons who have been convicted of a crime, whether employed or not, in strengthening or developing their employment skills and in making or easing their transition from incarceration to work; or the local nonprofit organization assists persons who are eligible for the Wisconsin works program (commonly referred to as "W-2"), military veterans, persons who have been convicted of a crime, persons who are eligible for food stamps, or minority group members, whether employed or not, in preparing for or gaining entry into the skilled trades.

4. Job Retention Skills Development Program. Requires each technical college district board to offer, at a frequency based upon demand in the district, a job retention skills development program to assist employers in retaining new employees, building the job skill levels of those employees, and assisting those employees in attaining higher wages and long-term careers. The program must emphasize job retention skills development for employees with incomes at or below 200% of the federal poverty line who are current or former recipients of public assistance, in the first six months of employment with their employer, or entry-level employees. The program must include training in the skills needed to achieve punctuality and consistency in attendance at work, to work effectively in a team, to communicate with supervisors and coworkers, and to solve basic job-related personal and interpersonal problems. The bill requires the state technical college system board, in consultation with employers, technical college district boards, and DWD, to develop standards for assessing the job retention skills of participants before and after participation in the program. The bill also requires technical college district boards to assist employers in providing ongoing job retention skills development and reinforcement activities in the work place. Finally, the bill requires W-2 agencies to coordinate case management services that are provided to W-2 participants in unsubsidized employment with the job retention skills development program.

5. Preapprenticeship Basic Skills Training. Directs DWD to contract with an organization of employees, an association of employers, or some other similar responsible agency in this state (organization) to provide preapprenticeship basic skills training grants of up to $500 to persons whose family income does not exceed 165% of the federal poverty line and who have previously failed a test for placement in an apprenticeship program providing instruction in an industrial manufacturing trade, a private sector service occupation, or certain construction trades, but who wish to participate in such a program. A person who receives a preapprenticeship basic skills training grant may use the grant moneys received to pay for the costs of tuition, fees, books, supplies, and materials, and for any other direct training costs, required to attend a preapprenticeship basic skills training program provided by an organization, a technical college, or a proprietary school approved by the educational approval board.

6. Apprenticeship Marketing Program. Requires DWD to conduct apprenticeship marketing activities, including the development and provision of promotional materials directed at encouraging employers to hire apprentices, educating high school career counselors on careers available in the skilled trades, encouraging the youth of this state to consider a career in the skilled trades, and otherwise promoting the availability and benefits of careers in the skilled trades. The bill requires DWD to solicit contributions from private sources to assist in the provision of those promotional materials and to seek the advice of and consult with the apprenticeship marketing council created by the bill regarding the administration of those apprenticeship marketing activities.

For further information see the state 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:

AB557, s. 1 Section 1. 15.227 (14) of the statutes is created to read:

AB557,4,8 15.227 (14) Apprenticeship marketing council. There is created in the department of workforce development an apprenticeship marketing council appointed by the secretary of workforce development. The council shall consist of 4 members appointed for 3-year terms who represent the interests of employees, 4 members appointed for 3-year terms who represent the interests of employers, and 2 employees of the department of workforce development to serve at the pleasure of the secretary.

AB557, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB557, s. 3 Section 3. 20.292 (1) (kd) of the statutes is created to read:

AB557,5,5 20.292 (1) (kd) Job retention skills development programs. All moneys transferred from the appropriation account under s. 20.445 (3) (md) for job retention skills development programs under s. 38.34. No moneys may be encumbered from this appropriation after June 30, 2004.

AB557, s. 4 Section 4. 20.445 (1) (d) of the statutes is created to read:

AB557,5,8 20.445 (1) (d) Workplace diversity grant program. The amounts in the schedule for workplace diversity grants under s. 106.28.

AB557, s. 5 Section 5. 20.445 (3) (md) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,5,18 20.445 (3) (md) Federal block grant aids. The amounts in the schedule, less the amounts withheld under s. 49.143 (3), for aids to individuals or organizations and to be transferred to the appropriation accounts under ss. 20.255 (2) (kh), and (kp), 20.292 (1) (kd), 20.433 (1) (k), 20.434 (1) (kp) and (ky), 20.435 (3) (kc), (kd), (km), and (ky), (5) (ky), (7) (ky), and (8) (kx), 20.465 (4) (k), and 20.835 (2) (kf). All block grant moneys received for these purposes from the federal government or any of its agencies and all moneys recovered under s. 49.143 (3) shall be credited to this appropriation account.

AB557, s. 6 Section 6. 38.34 of the statutes is created to read:

AB557,6,8 38.34 Job retention skills development programs. (1) Each district board shall offer, at a frequency based upon demand in the district, a job retention skills development program in order to assist employers in retaining new employees, building the job skill levels of those employees, and assisting those employees in attaining higher wages and long-term careers. To the extent practicable, the district board shall offer the program at employment sites. The program shall emphasize job retention skills development for employees with gross incomes at or below 200% of the poverty line, as defined in s. 49.001 (5), who are any of the following:

AB557,6,10 (a) Current or former recipients of public assistance, including participants in Wisconsin works employment positions under s. 49.147.

AB557,6,12 (b) Employees who are within the first 6 months of employment with their employer.

AB557,6,13 (c) Entry-level employees.

AB557,6,14 (2) The program shall provide training in all of the following:

AB557,6,16 (a) Skills needed to achieve punctuality and consistency in attendance at the employee's employment.

AB557,6,17 (b) Skills needed to effectively work in a team.

AB557,6,18 (c) Skills needed to effectively communicate with supervisors and coworkers.

AB557,6,20 (d) Skills needed to solve basic workplace-related personal and interpersonal problems.

AB557,6,25 (3) (a) The board shall supervise, and establish minimum requirements for, the program. Except as provided in sub. (2), the board shall determine the length and content of the program after consultation with employers, district boards, Wisconsin works agencies, as defined in s. 49.001 (9), local units of government, and labor organizations.

AB557,7,4 (b) In consultation with employers, district boards, and the department of workforce development, the board shall develop standards for assessing the job retention skills, including the skills specified in sub. (2), of employees before and after their participation in the program.

AB557,7,8 (4) To the extent practicable, the district board shall assist employers in providing ongoing job retention skills development and reinforcement activities in the workplace. The district board may charge employers a fee for the program and services offered under this section.

AB557,7,9 (5) This section does not apply after December 31, 2005.

AB557, s. 7 Section 7. 49.1475 of the statutes is amended to read:

AB557,7,23 49.1475 Follow-up services. Following any follow-up period required by the contract entered into under s. 49.143, a Wisconsin works agency may provide case management services for an individual who moves from a Wisconsin works employment position to unsubsidized employment to help the individual retain the unsubsidized employment. Case management services may include the provision of employment skills training; English as a 2nd language classes, if the Wisconsin works agency determines that the course will facilitate the individual's efforts to retain employment; a course of study meeting the standards established under s. 115.29 (4) for the granting of a declaration of equivalency of high school graduation; or other remedial education courses. A Wisconsin works agency shall coordinate case management services with a program offered by a technical college under s. 38.34. The Wisconsin works agency may provide case management services regardless of the individual's income and asset levels.

AB557, s. 8 Section 8. 49.175 (1) (zp) of the statutes is created to read:

AB557,8,4 49.175 (1) (zp) Job retention skills development programs. For the transfer of moneys to the technical college system board for implementation costs for job retention skills development programs under s. 38.34, $200,000 in fiscal year 2002-03.

AB557, s. 9 Section 9. 71.05 (6) (a) 15. of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB557,8,11 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3s), and (5v) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB557, s. 10 Section 10. 71.07 (5v) of the statutes is created to read: