SB399: Bill Text

3. The bill allows DWD to set off any amounts against state tax refund overpayments. Currently, DWD may only set claimants' benefit overpayments off against state tax refund overpayments.

4. The bill allows DWD to assess a third party who fails to surrender property that DWD attempts to collect through levy a penalty in the amount of 50 percent of the debt owed by the debtor. The bill provides for such assessments to be deposited in the unemployment program integrity fund. Current law instead provides that the third party is subject to proceedings to enforce the levy and is liable to the department for up to 25 percent of the debt.

5. Under current law, DWD may issue a warrant directed to an employee or other agent of DWD. In the execution of such a warrant, the employee or agent has all the powers conferred by law upon a sheriff. The bill allows DWD, when executing such a warrant, to conduct an execution sale of property in any county of this state and to sell the property in any manner that will bring the highest net bid or price, including an Internet-based auction or sale.

Fiscal agents; joint and several liability

Under current law, a person receiving certain support services may be provided the services of a fiscal agent. The fiscal agent is responsible for complying with the person's duties as an employer under the UI law. This bill provides that a private agency that serves as a fiscal agent or that contracts with a fiscal intermediary to serve as a fiscal agent may be found jointly and severally liable for amounts owed by the person receiving the support services if certain conditions are met.

Requests for information regarding benefit eligibility

Under current law, DWD may require any claimant to answer questions relating to the claimant's eligibility for benefits. A claimant is ineligible to receive benefits for any week in which the claimant fails to comply with a request by DWD to provide the information until the claimant complies with the request. If a claimant later complies with such a request, the claimant is eligible to receive benefits as of the week in which the failure to provide information occurred, if otherwise qualified.

The bill modifies this provision so that a claimant who fails to comply with such a request is ineligible beginning with the week with respect to which the department questions the claimant's eligibility, instead of the week in which the failure occurs. If a claimant later complies with such a request, the claimant is eligible to receive benefits as of the week with respect to which the department questions the claimant's eligibility, if otherwise qualified.

Ineligibility for benefits for concealment of certain payments

Current law provides that a claimant is totally ineligible for benefits, including any partial benefits for which the claimant would otherwise be eligible, for each week the claimant conceals wages or hours worked. This bill similarly provides that a claimant is totally ineligible for benefits for each week the claimant conceals various other types of payments, including holiday pay, vacation pay, termination pay, or sick pay.

Revisions to drug testing statutes

The bill includes a number of changes concerning the testing of UI claimants for the presence of controlled substances, including all of the following:

1. Providing employers who submit information to DWD about individuals who fail or refuse to take drug tests civil immunity for acts or omissions with respect to such submissions.

2. Providing for the transfer, at the end of each fiscal biennium, of any unencumbered moneys appropriated for drug testing and related expenses to the unemployment program integrity fund to be used for DWD UI program integrity activities.

3. Additional changes and clarifications regarding confidentiality of claimants' information related to drug testing.

Minor and technical changes

The bill includes a number of minor and technical changes to the UI law, including all of the following:

1. Correcting cross-references, including updating references to federal law.

2. Certain changes regarding eligibility for benefits under the work-share benefits statute.

3. Updating references to benefit checks to account for electronic payments and updating references to mailing to account for electronic delivery.

4. Clarifications to the UI appeals process.

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:

SB399,1 Section 1. 20.445 (1) (aL) of the statutes is amended to read:

SB399,4,8 20.445 (1) (aL) Unemployment insurance administration; controlled substances testing and substance abuse treatment. Biennially, the amounts in the schedule to conduct for conducting screenings of applicants, testing applicants for controlled substances, for the provision of substance abuse treatment to applicants and claimants, and for related expenses under s. 108.133. Notwithstanding s. 20.001 (3) (b), the unencumbered balance on June 30 of each odd-numbered year shall be transferred to the unemployment program integrity fund.

SB399,2 Section 2. 20.445 (1) (u) of the statutes is amended to read:

SB399,4,13 20.445 (1) (u) Unemployment interest payments and transfers. From the unemployment interest payment fund, a sum sufficient to make all moneys received from assessments under s. 108.19 (1m) for the purpose of making the payments and transfers authorized under s. 108.19 (1m).

SB399,3 Section 3. 20.445 (1) (v) of the statutes is amended to read:

SB399,4,18 20.445 (1) (v) Unemployment program integrity. From the unemployment program integrity fund, a sum sufficient to make all moneys received from sources identified under s. 108.19 (1s) (a) for the purpose of making the payments authorized under s. 108.19 (1s) (b).

SB399,4 Section 4. 108.02 (13) (i) of the statutes is amended to read:

SB399,5,18 108.02 (13) (i) An “employer" employer shall cease to be subject to this chapter only upon department action terminating coverage of such employer. The department may terminate an “employer's" employer's coverage, on its own motion or on application by the “employer" employer, by electronically delivering to the employer, or mailing a notice of termination to the “employer's" employer's last-known address, a notice of termination. An employer's coverage may be terminated whenever the employer ceased to exist, transferred its entire business, or would not otherwise be subject under any one or more of pars. (b) to (g). If any employer of agricultural labor or domestic service work becomes subject to this chapter under par. (c) or (d), with respect to such employment, and such the employer is otherwise subject to this chapter with respect to other employment, the employer shall continue to be covered with respect to agricultural labor or domestic service, or both, while the employer is otherwise subject to this chapter, without regard to the employment or wage requirements under par. (c) or (d). If a termination of coverage is based on an employer's application, it shall be effective as of the close of the quarter in which the application was filed. Otherwise, it shall be effective as of the date specified in the notice of termination.

SB399,5 Section 5. 108.04 (1) (hm) of the statutes is amended to read:

SB399,6,7 108.04 (1) (hm) The department may require any claimant to appear before it and to answer truthfully, orally or in writing, any questions relating to the claimant's eligibility for benefits or to provide such demographic information as may be necessary to permit the department to conduct a statistically valid sample audit of compliance with this chapter. A claimant is not eligible ineligible to receive benefits for any week in about which the claimant fails to comply with a request by the department to provide the information required under this paragraph, or any subsequent week, and remains ineligible until the claimant complies with the request. Except as provided in sub. (2) (e) and (f), if a claimant later complies with a request by the department within the period specified in s. 108.09 (2) (c), the claimant is eligible to receive benefits as of the week in which the failure occurred about which the department questions the claimant's eligibility, if otherwise qualified.

SB399,6 Section 6. 108.04 (1) (hr) of the statutes is created to read:

SB399,6,17 108.04 (1) (hr) The department may require any claimant to appear before it and to provide, orally or in writing, demographic information that is necessary to permit the department to conduct a statistically valid sample audit of compliance with this chapter. A claimant is ineligible to receive benefits for any week in which the claimant fails to comply with a request by the department to provide the information required under this paragraph and remains ineligible until the claimant complies with the request. If a claimant later complies with a request by the department within the period specified in s. 108.09 (2) (c), the claimant is eligible to receive benefits as of the week in which the failure occurred, if otherwise qualified.

SB399,7 Section 7. 108.04 (2) (bm) of the statutes is amended to read:

SB399,6,23 108.04 (2) (bm) A claimant is ineligible to receive benefits for any week for which there is a determination that the claimant failed to conduct a reasonable search for suitable work and the department has not waived the search requirement under par. (b) or s. 108.062 (10m). If the department has paid benefits to a claimant for any such week, the department may recover the overpayment under s. 108.22 (8).

SB399,8 Section 8. 108.04 (2) (g) 2. of the statutes is amended to read:

SB399,7,20 108.04 (2) (g) 2. If a claimant's security credentials are used in the filing of an initial or continued claim for benefits or any other transaction, the individual using the security credentials is presumed to have been the claimant or the claimant's authorized agent. This presumption may be rebutted by a preponderance of evidence showing that the claimant who created the security credentials or the claimant's authorized agent was not the person who used the credentials in a given transaction. If a claimant uses an agent to engage in any transaction with the department using the claimant's security credentials, the claimant is responsible for the actions of the agent. If a claimant who created security credentials or the claimant's authorized agent divulges the credentials to another person, or fails to take adequate measures to protect the credentials from being divulged to an unauthorized person, and the department pays benefits to an unauthorized person because of the claimant's action or inaction, the department may recover from the claimant the benefits that were paid to the unauthorized person in the same manner as provided for overpayments to claimants under s. 108.22 (8) or under s. 108.245. If a claimant who created security credentials or the claimant's authorized agent divulges the credentials to another person, or fails to take adequate measures to protect the credentials from being divulged to an unauthorized person, the department is not obligated to pursue recovery of, or to reimburse the claimant for, benefits payable to the claimant that were erroneously paid to another person.

SB399,9 Section 9. 108.04 (7) (e) of the statutes is amended to read:

SB399,8,5 108.04 (7) (e) Paragraph (a) does not apply if the department determines that the employee accepted work which that the employee could have failed to accept under sub. (8) and terminated such the work on the same grounds and within the first 30 calendar days after starting the work, or that the employee accepted work which that the employee could have refused under sub. (9) and terminated such the work within the first 30 calendar days after starting the work. For purposes of this paragraph, an employee has the same grounds for voluntarily terminating work if the employee could have failed to accept the work under sub. (8) (d) to (em) when it was offered, regardless of the reason articulated by the employee for the termination.

SB399,10 Section 10. 108.04 (8) (b) of the statutes is amended to read:

SB399,9,6 108.04 (8) (b) There is a rebuttable presumption that an employee has failed, without good cause, to accept suitable work when offered if the department determines, based on a report submitted by an employing unit in accordance with s. 108.133 (4), that the employing unit required, as a condition of an offer of employment, that the employee submit to a test for the presence unlawful use of controlled substances and withdrew the conditional offer after the employee either declined to submit to such a test or tested positive for one or more controlled substances without evidence of a valid prescription for each controlled substance for which the employee tested positive. In the case of the employee declining to submit to such a test, the employee shall be ineligible for benefits until the employee again qualifies for benefits in accordance with the rules promulgated under this paragraph. In the case of the employee testing positive in such a test without evidence of a valid prescription, the employee shall be ineligible for benefits until the employee again qualifies for benefits in accordance with the rules promulgated under this paragraph, except that the employee may maintain his or her eligibility for benefits in the same manner as is provided in s. 108.133 (3) (d). The department shall promulgate rules identifying a period of ineligibility that must elapse or a requalification requirement that must be satisfied, or both, in order for an employee who becomes ineligible for benefits as provided in this paragraph to again qualify for benefits and specifying how a claimant may overcome the presumption in this paragraph. The department shall charge to the fund's balancing account any benefits otherwise chargeable to the account of an employer that is subject to the contribution requirements under ss. 108.17 and 108.18 whenever an employee of that employer fails, without good cause, to accept suitable work as described in this paragraph.

SB399,11 Section 11. 108.04 (13) (c) of the statutes is amended to read:

SB399,9,25 108.04 (13) (c) If an employer, after notice of a benefit claim, fails to file an objection to the claim under s. 108.09 (1), any benefits allowable under any resulting benefit computation shall, unless the department applies a provision of this chapter to disqualify the claimant, be promptly paid. Except as otherwise provided in this paragraph, any eligibility question in objection to the claim raised by the employer after benefit payments to the claimant are commenced does not affect benefits paid prior to before the end of the week in which a determination is issued as to the eligibility question unless the benefits are erroneously paid without fault on the part of the employer. Except as otherwise provided in this paragraph, if an employer fails to provide correct and complete information requested by the department during a fact-finding investigation, but later provides the requested information, benefits paid prior to before the end of the week in which a redetermination is issued regarding the matter or, if no redetermination is issued, prior to before the end of the week in which an appeal tribunal decision is issued regarding the matter, are not affected by the redetermination or decision, unless the benefits are erroneously paid without fault on the part of the employer as provided in par. (f). If benefits are erroneously paid because the employer and the employee are at fault, the department shall charge the employer for the benefits and proceed to create an overpayment under s. 108.22 (8) (a). If benefits are erroneously paid without fault on the part of the employer, regardless of whether the employee is at fault, the department shall charge the benefits as provided in par. (d), unless par. (e) applies, and proceed to create an overpayment under s. 108.22 (8) (a). If benefits are erroneously paid because an employer is at fault and the department recovers the benefits erroneously paid under s. 108.22 (8), the recovery does not affect benefit charges made under this paragraph.

SB399,12 Section 12. 108.04 (13) (e) of the statutes is amended to read:

SB399,10,25 108.04 (13) (e) If the department erroneously pays benefits from one employer's account and a 2nd employer is at fault, the department shall credit the benefits paid to the first employer's account and charge the benefits paid to the 2nd employer's account. Filing of a tardy or corrected report or objection does not affect the 2nd employer's liability for benefits paid prior to before the end of the week in which the department makes a recomputation of the benefits allowable or prior to before the end of the week in which the department issues a determination concerning any eligibility question raised by the report or by the 2nd employer. If the 2nd employer fails to provide correct and complete information requested by the department during a fact-finding investigation, but later provides the requested information, the department shall charge to the account of the 2nd employer the cost of benefits paid prior to before the end of the week in which a redetermination is issued regarding the matter or, if no redetermination is issued, prior to before the end of the week in which an appeal tribunal decision is issued regarding the matter, unless the benefits erroneously are paid without fault on the part of the employer as provided in par. (f). If the department recovers the benefits erroneously paid under s. 108.22 (8), the recovery does not affect benefit charges made under this paragraph.

SB399,13 Section 13. 108.04 (16) (a) 4. of the statutes is amended to read:

SB399,11,4 108.04 (16) (a) 4. A plan for training approved under the federal workforce investment act Workforce Innovation and Opportunity Act, 29 USC 2822 3101 to 3361, or another federal law that enhances job skills.

SB399,14 Section 14. 108.04 (17) (e) of the statutes is amended to read:

SB399,11,15 108.04 (17) (e) A school year employee of a government unit, Indian tribe, or nonprofit organization which that provides services to or on behalf of any educational institution who performs services other than in an instructional, research, or principal administrative capacity is ineligible for benefits based on such services for any week of unemployment which occurs during a period between 2 successive academic years or terms if the school year employee performed such services for any such government unit, Indian tribe, or nonprofit organization in the first such year or term and there is reasonable assurance that he or she will perform such services for any such government unit, Indian tribe, or nonprofit organization in the 2nd such year or term.

SB399,15 Section 15. 108.05 (3) (d) of the statutes is amended to read:

SB399,11,20 108.05 (3) (d) A claimant is ineligible to receive benefits for any week in which the claimant conceals holiday pay, vacation pay, termination pay, or sick pay as provided in s. 108.04 (11) (a) or wages or hours worked as provided in s. 108.04 (11) (b).

SB399,16 Section 16. 108.05 (10) (b) of the statutes is amended to read:

SB399,11,22 108.05 (10) (b) Second, to recover overpayments under s. 108.22 (8) (b) 1.

SB399,17 Section 17. 108.062 (2) (m) of the statutes is amended to read:

SB399,12,5 108.062 (2) (m) Indicate whether the plan will include includes employer-sponsored training to enhance job skills sponsored by the employer and acknowledge that, pursuant to federal law, the employees in the work unit may participate in training funded under the federal Workforce Investment Act of 1998 Innovation and Opportunity Act, 29 USC 3101 to 3361, or another federal law that enhances job skills without affecting availability for work, subject to the department approval of the department.

SB399,18 Section 18. 108.062 (6) (a) of the statutes is amended to read:

SB399,12,18 108.062 (6) (a) Except as provided in par. (b), an employee who is included under a work-share program and who qualifies to receive regular benefits for any week during the effective period of the program shall receive a benefit payment for each week that the employee is included under the program in an amount equal to the employee's regular benefit amount under s. 108.05 (1) multiplied by the employee's proportionate reduction in hours worked for that week as a result of the work-share program. Such an employee shall receive benefits as calculated under this paragraph and not as provided under s. 108.05 (3). For purposes of this paragraph, the department shall treat holiday pay, vacation pay, termination pay, and sick pay paid by the employer that sponsors the plan as hours worked. In applying this paragraph, the department shall disregard discrepancies of less than 15 minutes between hours reported by employees and employers.

SB399,19 Section 19. 108.062 (10) of the statutes is amended to read:

SB399,13,8 108.062 (10) Availability for work. An employee who is receiving receives benefits under sub. (6) (a) for any week need not be available for work in that week other than for the normal hours of work that the employee worked for the employer that creates the work-share program immediately before the week in which the work-share program began and any additional hours in which the employee is engaged in training to enhance job skills sponsored by the employer that creates the plan or department-approved training funded under the federal Workforce Investment Act of 1998 that is approved by the department Innovation and Opportunity Act, 29 USC 3101 to 3361, or another federal law that enhances job skills. Unless an employee receives holiday pay, vacation pay, termination pay, or sick pay for missed work available under a work-share program, the department shall treat the missed work that an employee would have worked in a given week as hours actually worked by the employee for the purpose of calculating benefits under sub. (6).

SB399,20 Section 20. 108.09 (4) (d) 2. of the statutes is amended to read:

SB399,14,3 108.09 (4) (d) 2. If the appellant submits to the appeal tribunal a written explanation for failing to appear at the hearing that is received before a decision is electronically delivered or mailed under subd. 1., an appeal tribunal shall review the appellant's explanation. The appeal tribunal shall electronically deliver or mail to the respondent a copy of the appellant's explanation. The respondent may, within 7 days after the appeal tribunal electronically delivers or mails the appellant's explanation to the respondent, submit to the appeal tribunal a written response to the appellant's explanation. If the appeal tribunal finds that the appellant's explanation does not establish good cause for failing to appear, the appeal tribunal shall issue a decision containing this finding and such dismissing the appeal. Such a decision may be issued without a hearing. If the appeal tribunal finds that the appellant's explanation establishes good cause for failing to appear, the appeal tribunal shall issue a decision containing this finding, and such a decision may be issued without a hearing. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination. If such a hearing is held concerning any matter in the determination, the appeal tribunal shall only consider testimony and other evidence admitted at that hearing in making a decision.

SB399,21 Section 21. 108.09 (4) (e) 2. of the statutes is amended to read:

SB399,15,5 108.09 (4) (e) 2. If the respondent submits to the appeal tribunal a written explanation for failing to appear at the hearing that is received before a decision favorable to the respondent is electronically delivered or mailed under subd. 1., the appeal tribunal shall acknowledge receipt of the explanation in its decision but shall take no further action concerning the explanation at that time. If the respondent submits to the appeal tribunal a written explanation for failing to appear that is received before a decision unfavorable to the respondent is electronically delivered or mailed under subd. 1., an appeal tribunal shall review the respondent's explanation. The appeal tribunal shall electronically deliver or mail to the appellant a copy of the respondent's explanation. The appellant may, within 7 days after the appeal tribunal electronically delivers or mails the respondent's explanation to the appellant, submit to the appeal tribunal a written response to the respondent's explanation. If the appeal tribunal finds that the respondent's explanation does not establish good cause for failing to appear, the appeal tribunal shall issue a decision containing this finding, and such a decision may be issued without a hearing. The same or another appeal tribunal established by the department for this purpose shall also issue a decision based on the testimony and other evidence presented at the hearing at which the respondent failed to appear. If the appeal tribunal finds that the respondent's explanation establishes good cause for failing to appear, the appeal tribunal shall issue a decision containing this finding, and such a decision may be issued without a hearing. The same or another appeal tribunal established by the department for this purpose shall then issue a decision under sub. (3) (b) after conducting a hearing concerning any matter in the determination. If such a hearing is held concerning any matter in the determination, the appeal tribunal shall only consider testimony and other evidence admitted at that hearing in making a decision.

SB399,22 Section 22. 108.09 (9) (c) of the statutes is amended to read:

SB399,15,11 108.09 (9) (c) If any determination or decision awarding benefits is finally amended, modified, or reversed, any benefits paid to the claimant which that would not have been paid under such the final determination or decision shall be deemed an erroneous payment. Sections 108.04 (13) (c) and (d), 108.16 (3) , and 108.22 (8) shall apply to the charging and recovery of such the erroneous payment.

SB399,23 Section 23. 108.095 (8) of the statutes is amended to read:

SB399,15,15 108.095 (8) The mailing issuance of determinations and decisions under this section shall be first by electronic delivery or 1st class mail and may include the use of services performed by the U.S. postal service requiring the payment of extra fees.

SB399,24 Section 24. 108.10 (1) of the statutes is amended to read:

SB399,16,2 108.10 (1) The department shall investigate the status, and the existence and extent of liability of an employing unit, and may issue an initial determination accordingly. The department may set aside or amend the determination at any time prior to before a hearing on the determination on the basis of subsequent information or to correct a mistake, including an error of law. The department shall electronically deliver a copy of each determination to, or mail a copy of each determination to the last-known address of, the employing unit affected thereby. The employing unit may request a hearing as to any matter in that determination if the request is received by the department or postmarked within 21 days after the mailing department issues the initial determination and in accordance with such procedure as procedures prescribed by the department prescribes by rule.

SB399,25 Section 25. 108.10 (5) of the statutes is amended to read:

SB399,16,7 108.10 (5) The mailing issuance of determinations and decisions provided in subs. (1) to (4) shall be first by electronic delivery or 1st class, mail and may include the use of services performed by the U.S. postal department service requiring the payment of extra fees.

SB399,26 Section 26. 108.133 (1) (a) of the statutes is renumbered 108.133 (1) (ar).

SB399,27 Section 27. 108.133 (1) (ag) of the statutes is created to read:

SB399,16,11 108.133 (1) (ag) “Applicant” means an individual who files an initial claim in order to establish a benefit year under this chapter.

SB399,28 Section 28. 108.133 (2) (intro.) of the statutes is amended to read: