SB676: Bill Text

LRB-3902/2

PK/FK/MS/PG/GM:eev:jm

2013 - 2014 LEGISLATURE

2013 Senate BILL 676

March 13, 2014 - Introduced by Senator Grothman, cosponsored by Representative Craig. Referred to Committee on Health and Human Services.

SB676,3,3 An Act to repeal 20.235 (1) (b), 20.235 (1) (fd), 20.235 (1) (fe), 20.235 (1) (ff), 20.235 (1) (fg), 20.235 (1) (fj), 20.235 (1) (gm), 20.235 (1) (k), 20.235 (1) (ke), 20.235 (1) (km), 20.505 (8) (hm) 4i., 20.505 (8) (hm) 10., 36.11 (6) (c), 38.04 (7m), 39.285, 39.30, 39.31, 39.38, 39.435 and 39.44; to renumber and amend 49.147 (1m) (a); to amend 5.02 (6m) (f), 16.27 (2) (a), 16.27 (5) (intro.), 16.27 (5) (b), 16.303 (1) (a), 16.306 (2) (a), 20.285 (1) (gb), 36.25 (49), 39.39 (2) (b), 39.45 (1) (a), 39.45 (1) (b), 49.147 (1m) (title), 49.147 (4) (am), 49.147 (4) (as), 49.147 (4) (av), 49.147 (5) (bm), 49.147 (5) (bs), 49.147 (5m) (a) (intro.), 49.147 (5m) (bL), 49.148 (1) (intro.), 49.148 (1) (b) 1., 49.148 (1) (b) 1m. d., 49.148 (1) (b) 3., 49.148 (1) (c), 49.148 (1m) (a) (intro.), 49.155 (5) (a), 49.155 (6g) (a) 2., 49.155 (6g) (a) 3., 66.1201 (9) (a), 71.53 (2) (c), 118.60 (2) (a) 1. b., 119.23 (2) (a) 1. b., 234.03 (intro.), 234.04 (1), 234.04 (2), 234.04 (3), 234.06 (1), 234.06 (3), 234.49 (2) (a) (intro.), 234.59 (2) (intro.), 234.592 (2) (intro.), 944.21 (8) (b) 4. and 948.11 (4) (b) 4.; and to create 16.27 (5m), 16.3025, 16.305 (2) (d), 16.306 (2) (c), 36.11 (59), 39.28 (7), 49.143 (4m), 49.147 (1m) (a) 2., 49.147 (1m) (a) 3., 49.148 (2), 49.148 (5), 49.155 (1m) (c) 4., 49.155 (6g) (a) 5., 49.79 (1m), 49.79 (7c), 49.79 (7h), 49.79 (11), 49.823, 49.97, 66.1204, 71.07 (9e) (h), 71.53 (2) (g), 115.34 (3) and 234.038 of the statutes; relating to: education and training under Wisconsin Works; reducing Wisconsin Works benefits; a minimum copayment, maximum child care hours, and reducing income based on marriage for eligibility under Wisconsin Shares; changes to the food stamp program relating to financial eligibility for benefits, allowing an election to reduce benefits, recouping unused benefits, and prohibiting supplier discounts; prohibiting advertising concerning means-tested public assistance on radio or television; requiring consideration of the income and assets of all individuals in a household for purposes of eligibility for any means-tested public assistance; eligibility requirements for persons or families of low and moderate income to receive certain housing, housing assistance, grants, loans, or benefits from the Wisconsin Housing and Economic Development Authority, the Department of Administration, and local housing authorities; reducing the authority of local housing authorities; eligibility requirement for purposes of receiving low-income energy assistance; prohibiting new claims under the earned income tax credit; limiting eligibility for the homestead tax credit; elimination of certain grant programs administered by the Higher Educational Aids Board and transfer of the unencumbered balances in the appropriations for those programs to the University of Wisconsin System for the purpose of tuition reduction; consideration of the income and assets of both parents of a student under 22 years of age for purposes of awarding a grant or scholarship to such a student and the permissible uses of grant or scholarship moneys awarded; income eligibility requirements for enrollment in a private school participating in a parental choice program; the school lunch program; and granting rule-making authority.

Analysis by the Legislative Reference Bureau

Wisconsin Works and Wisconsin Shares

The Wisconsin Works (W-2) program under current law provides monthly grants and work experience, in the form of trial employment match program jobs, community service jobs, and transitional placements, for low-income custodial parents who are at least 18 years old; monthly grants for custodial parents of infants who are eight weeks old or younger and for unmarried, pregnant women who are unable to participate in the workforce because they are in the third trimester of at-risk pregnancies; job search assistance to noncustodial parents who are required to pay child support, to minor custodial parents, and to pregnant women who are not custodial parents; as well as child care subsidies under a program known as Wisconsin Shares, under which an individual who is the parent of a child under the age of 13 or, if the child is disabled, under the age of 19, and who satisfies other eligibility criteria may receive a child care subsidy for child care services that the individual needs to participate in various educational or work activities. W-2 is administered, generally, by W-2 agencies under contracts with the Department of Children and Families (DCF).

Under current law, a W-2 agency must conduct an educational needs assessment of each individual who applies for an employment position under W-2 and, if the individual and W-2 agency determine that the individual needs or would benefit from education or training activities and that the individual is eligible for a W-2 employment position, the W-2 agency must include education or training activities in the individual's employability plan. Under the bill, a W-2 agency must conduct an education and training assessment of each individual and, if the individual and W-2 agency determine that the individual needs or would benefit from education or training activities to better prepare the individual for employment, the W-2 agency determines that the individual would likely be successful in the education or training activities, and the individual is eligible for a W-2 employment position, the W-2 agency must include education or training activities in the individual's employability plan. The bill sets out the specific factors that the W-2 agency must use to determine whether the individual is likely to be successful in the education or training activities, including whether the individual can read and write, whether the individual can perform basic arithmetic functions, whether the individual has stable housing, whether the individual is able to keep appointments on time, and whether the individual has the support of his or her family. The bill lists the specific types of education or training activities in which an individual may participate, including employer-sponsored training, courses in English as a second language, and technical college courses, and provides, generally, that an individual may participate in the education or training activities for no more than 18 total months, that DCF must specify the maximum time of classroom instruction, and that the individual's employer, if any, must approve of the individual's participation in the education or training activities. Under current law, an individual in a community service job employment position may be required to participate in education or training activities for not more than 10 hours per week and an individual in a transitional placement employment position may be required to participate in education or training activities for not more than 12 hours per week. The bill reduces those maximum times to not more than eight hours per week and not more than 10 hours per week, respectively.

Under current law, an individual in a community service job employment position receives a monthly grant of $653, an individual in a transitional placement employment position receives a monthly grant of $608, and a custodial parent of an infant who is eight weeks old or younger or an unmarried, pregnant woman who is unable to participate in the workforce because she is in the third trimester of an at-risk pregnancy receives a monthly grant of $673. The bill reduces each of those monthly grant amounts by $20. In addition, under the bill DCF is directed to calculate the monthly amount or value of other public assistance benefits received by these W-2 participants and to reduce the monthly benefit by that amount. DCF must promulgate rules that define, for this purpose, what other public assistance benefits are.

The bill prohibits DCF and W-2 agencies from paying a bonus to a W-2 participant on the basis of the length of time the participant remains at a job. The bill also requires DCF to implement a case monitoring audit process to ensure that W-2 agencies are adequately monitoring the activities of all W-2 participants.

Under current law, to be eligible for a child care subsidy under Wisconsin Shares, the gross income of the child's family may not exceed 200 percent of the federal poverty line (FPL). The bill requires that the gross income of the child's family be reduced by $20,000 before the gross income as a percentage of FPL is calculated if the child's parents are married. Current law provides that no more than 12, or in some cases up to 16, hours of subsidized child care may be authorized per child per day. The bill imposes a limit on the amount of child care for which a subsidy may be provided of 40 hours per week per child. Also under current law, a child care subsidy recipient must pay the difference, if any, between the cost of the child care and the amount of the child care subsidy. The bill specifies that a child care subsidy recipient must pay a minimum copayment of $2 per hour per child.

FoodShare

The federal Supplemental Nutrition Assistance Program (SNAP), known in Wisconsin as FoodShare and formerly known as the food stamp program, provides benefits to eligible low-income households for the purchase of food. FoodShare is administered by the Department of Health Services (DHS), and the state and the federal government share the cost of administration. Benefits, which are electronically debited to a Quest card, are paid entirely with federal funds. Any benefit amount that is not used in the month of receipt is carried over and may be used by the recipient for up to one year. Eligibility criteria for FoodShare, which is based on federal law, is not set out in the statutes. In Wisconsin, generally, an individual or family is eligible if gross income does not exceed 200 percent of FPL and assets are not considered. If a household has an elderly, blind, or disabled member, there is no limit on gross income, but net income may not exceed 100 percent of FPL, and such a household may not have more than $3,000 in countable assets if gross income exceeds 200 percent of FPL.

Under the bill, to be eligible for FoodShare, an individual's or family's gross income may not exceed 130 percent of FPL and net income may not exceed 100 percent of FPL; the household may not have countable assets that exceed $2,000 in value, except that countable assets may not exceed $3,200 in value if the household includes an individual who is at least 60 years old, blind, or disabled. In addition, the bill requires that the gross and net incomes of a household be reduced by $15,000 each before determining whether the gross or net income exceeds 130 or 100 percent of FPL, respectively, if the household includes a married couple.

The bill prohibits DHS from allowing or accepting online applications for FoodShare and prohibits retail grocery stores from giving discounts on the cost of food or other items for using food stamp benefits to purchase the food or other items. The bill also provides that, to the extent permitted under federal law, DHS must implement a food stamp benefit distribution system that allows a food stamp benefit recipient to elect to receive a benefit amount that is less than the amount for which the recipient's household is eligible and that recoups any food stamp benefits that are not used up in the month in which they are received.

Public assistance

The bill defines "means-tested public assistance" as services, benefits, or other assistance that are provided to individuals or families under the public assistance provisions of the statutes and for which income or assets is a factor in determining eligibility. Under the bill, when determining an individual's or family's eligibility for means-tested public assistance, DHS or DCF must take into consideration the income or assets, whichever is applicable for the program, of every individual who resides in the household of the individual or family that is applying for the means-tested public assistance. DHS or DCF must request a waiver of federal law if it appears that a waiver would be necessary for implementing this requirement for any particular program providing means-tested public assistance. The bill also prohibits DHS or DCF from using radio or television to advertise the availability of, or to provide any information concerning, means-tested public assistance.

Low-income energy assistance

Under current law, the Department of Administration (DOA) administers a program that provides low-income energy assistance to eligible households, including households with incomes of less than 60 percent of the statewide median household income and households composed entirely of individuals receiving Aid to Families with Dependent Children or Supplemental Security Income. This bill provides that for purposes of determining eligibility for low-income energy assistance, the income of a household that includes a married couple is reduced by $10,000. This bill also makes ineligible for low-income energy assistance a household with assets that exceed $2,000 in cash equity value or with a vehicle having an equity value of $10,000 or greater, unless a member of the household is disabled or aged 62 or older. Finally, under the bill, DOA may not notify a household of the household's eligibility for low-income energy assistance more than twice in a 12-month period.

Department of Administration low-income housing assistance

Under current law, DOA may make grants or loans, directly or through agents designated by DOA, to persons or families of low and moderate income to defray housing costs, including utility costs, and may make grants to community-based organizations, organizations operated for profit, or housing authorities to improve the ability of these entities to provide housing opportunities for persons or families of low and moderate income.

This bill requires DOA to impose limits on eligibility and housing for families and persons of low and moderate income seeking housing assistance directly or indirectly through DOA, unless the person is, or the family includes, a person who is disabled or aged 62 or older. Under the requirement, persons or families of low and moderate income who receive assistance with housing, housing costs, utility-related costs, or grants or loans from any project or program administered by DOA as described above, are subject to the following limitations:

1. A person or family of low or moderate income is restricted to housing in which the square footage is less than 50 percent of the average square footage for a rental unit of average rental value in the county in which the person or family resides. In order to satisfy this requirement, DOA may require that more than two unrelated persons or families of low or moderate income be housed in one housing unit.

2. With two exceptions, persons or families of low or moderate income with assets that exceed $2,000 in cash equity value or with a vehicle having an equity value of $10,000 or greater may not receive housing or assistance with housing costs or utility-related costs from DOA.

3. For purposes of determining eligibility for low-income housing assistance, the income of any individual who is not related to the applicant and who is living in the applicant's home at the time of the application must be included in the applicant's income.

If DOA determines that it may not implement the limitations and prohibitions established under the bill without a waiver of federal law from the federal Department of Housing and Urban Development (HUD) and that a waiver of federal law is available, DOA must apply for and obtain a waiver from HUD before it may implement the limitations.

Wisconsin Housing and Economic Development Authority low-income housing assistance

Under current law, the Wisconsin Housing and Economic Development Authority (WHEDA) administers several programs that provide assistance to persons and families of low and moderate income in obtaining housing. Eligibility for the programs is determined under the Wisconsin statutes and under federal law, including the Housing Choice Voucher Program administered by HUD. Funding for these programs is provided from a number of sources, including bonds issued by WHEDA under its statutory authority and from the federal government.

This bill requires WHEDA to impose the following limits on eligibility for families and persons of low and moderate income seeking housing assistance directly or indirectly through WHEDA:

1. No person may receive housing assistance from HUD through WHEDA unless the person is disabled or aged 62 or older. The bill defines "disabled" to mean blind as established under federal law or disabled as established under federal law.

2. Persons or families of low and moderate income who receive housing or housing assistance directly or indirectly from WHEDA are subject to the following limitations, unless the person is, or the family includes, a person who is disabled or aged 62 or older:

a. A person or family of low or moderate income must be restricted to housing in which the square footage is less than 50 percent of the average square footage for a rental unit of average rental value in the county in which the person or family resides. In order to satisfy this requirement, WHEDA may require that more than two unrelated persons or families of low or moderate income be housed in one housing unit.

b. With two exceptions, persons or families of low or moderate income with assets that exceed $2,000 in cash equity value or with a vehicle having an equity value of $10,000 or greater may not receive housing or housing assistance from WHEDA.

c. For purposes of determining eligibility for housing or housing assistance from WHEDA, the income of any individual who is not related to the applicant and who is living in the applicant's home at the time of the application must be included in the applicant's income.

If WHEDA determines that it may not implement the limitations and prohibitions established under the bill without a waiver of federal law from HUD and that a waiver of federal law is available, WHEDA must apply for and obtain a waiver from HUD before it may implement the limitations.

Taxation

Under federal law, the earned income tax credit (EITC) is a refundable tax credit for low-income workers. If the amount of the claim exceeds the worker's tax liability, the claimant receives a check for the excess amount from the Internal Revenue Service. The amount of the credit for which a claimant is eligible is based, in part, on whether the claimant has no qualifying children, one qualifying child, or more than one qualifying child.

Under current law, the refundable Wisconsin EITC may be claimed in an amount equal to a certain percentage of the federal basic EITC. To be eligible for the Wisconsin EITC, an individual must have one or more qualifying children. The Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one qualifying child, 11 percent of the federal credit if the claimant has two qualifying children, and 34 percent of the federal credit if the claimant has three or more qualifying children.

Under this bill, no new claims under the Wisconsin EITC may be filed for a taxable year that begins after December 31, 2014.

Under current law, the homestead tax credit may be claimed by an individual who is at least 18 years of age and who is not, in general, claimed as a dependent for federal income tax purposes in the year to which the claim relates. Under this bill, for claims filed for taxable years that begin after December 31, 2014, a claimant must be at least 55 years old to claim the homestead tax credit.

Local housing authorities

Generally under current law, a local housing authority may acquire, lease, and operate approved housing projects, and may provide for the construction, reconstruction, improvement, alteration, or repair of any housing project. Under this bill, after the effective date of the bill, a local housing authority may not provide for the construction of low-income housing unless it is for individuals age 55 and above. In addition, the bill prohibits a local housing authority from requesting more money for low-income housing.

Parental choice program pupil eligibility

Under the parental choice programs, a pupil who is a member of a family that has a total family income that does not exceed 3.0 times the poverty level may attend a private school at state expense under certain conditions. When verifying a family's income, the Department of Revenue must first deduct $7,000. This bill increases the deduction to $30,000.

School lunch program

This bill prohibits a school board from providing to a pupil's parent or guardian more than two notices describing eligibility criteria for the school lunch program in any school year.

Higher education grants and scholarships