SB327: Bill Text

Tax changes

Contribution rate schedules

Currently, all employers that engage employes in work which is covered under the unemployment compensation law, other than governmental and nonprofit employers which elect to pay directly for the cost of benefits, must pay contributions (taxes) to finance unemployment compensation benefits. The total contributions of an employer are the sum of the employer's contribution rate and the employer's solvency rate, each of which vary with the employment stability of the employer and the solvency of the unemployment reserve fund, from which benefits are paid. An employer's contributions payable as a result of its contribution rate are credited to the employer's account, while an employer's contributions payable as a result of its solvency rate are credited to the fund's balancing account, which is used to fund benefits not payable from any employer's account. Currently, there are 3 schedules of contribution and solvency rates. The schedule that applies for any year depends upon the solvency of the fund on June 30 of the preceding year. The schedule that results in the lowest contribution rates for most employers is currently in effect for any year when the fund has a cash balance of at least $1,000,000,000 on June 30 of the preceding year. This bill creates an additional schedule which is in effect for any year after 1997 when the fund has a cash balance of at least $1,200,000,000 on June 30 of the preceding year. The schedule provides for lower contribution rates than are provided under current schedules for most employers for any year in which their accounts have positive balances on June 30 of the preceding year.

Special assessments and offset of solvency rates

In addition to regular contributions currently payable by employers, this bill levies an assessment on each employer that is currently subject to a contribution requirement in the amount of 0.01% of an employer's taxable payroll for each year prior to the year 2000 (unless the employer currently pays a solvency rate less than 0.01% in which case the assessment is equal to the employer's current solvency rate as applied to the employer's taxable payroll). The bill permits DWD to reduce or eliminate the levy for any year. The bill also directs DWD to reduce the solvency rate of each employer that pays an assessment for any year in which an assessment is levied by the assessment rate applicable to that employer for that year.

Under the bill, revenue received from the assessment may only be used for the purpose of design or development of unemployment insurance information technology systems. The bill also appropriates $1,450,000 from existing federal revenues and existing revenues received by DWD as interest on late payments and penalties for late payments and certain other violations of the unemployment compensation law to be used for the same purpose. The bill directs DWD to submit quarterly reports to the council on unemployment insurance describing the use of any moneys expended by DWD for this purpose and the status of any project for which moneys were expended.

Personal liability for certain business obligations

Currently, if an individual is an officer, employe, member or manager holding at least 20% of the ownership interest of a corporation or limited liability company, if the individual has control of or responsibility for filing unemployment compensation contribution reports or making unemployment compensation payments and the individual wilfully fails to file such reports or to make such payments, the individual may be found personally liable for any payments due, including interest, tardy payment or filing fees, costs and other fees if the corporation or limited liability company is unable to make these payments. This bill provides that ownership interest of a corporation or limited liability company for these purposes includes ownership or control, directly or indirectly, by the individual, by the individual's spouse or child, by the individual's parent if the individual is under age 18, or by a combination of 2 or more of them, as well as such ownership of an interest in a parent corporation or limited liability company of which the corporation or limited liability company is a wholly owned subsidiary.

Other changes

Law name change

The bill changes the name of the unemployment compensation law to the "unemployment insurance" law and makes terminology changes throughout the statutes to effect the name change.

Performance of services for customers of employe service companies

Currently, an employe service company is considered to be the employer of an individual for unemployment compensation purposes if the individual performs services for a client or customer of the employe service company and the employe service company is taxed under the Federal Unemployment Tax Act on the basis of that employment. This bill substitutes a rule that an employe service company is considered to be the employer of an individual who the company engages in employment to perform services for a client or customer of the company.

Set aside, amendment, reopening, reversal or modification of certain determinations and decisions

Currently, DWD may set aside or amend an initial determination concerning the eligibility of a claimant to receive unemployment compensation benefits within one year of the determination to correct a mistake, unless a party has filed a timely request for a hearing as to the determination. Unless a party has filed a timely petition for review of a decision, an appeal tribunal (hearing examiner) may similarly reopen any decision concerning benefit eligibility or the status of an employer within one year of the decision if the tribunal determines that false testimony was given or false evidence was offered. The labor and industry review commission (LIRC) may set aside any final determination of DWD or any decision of an appeal tribunal or LIRC within one year of the determination or decision upon the grounds of mistake or newly discovered evidence. Currently, DWD is not authorized to set aside any decision of an appeal tribunal and is not authorized to reverse, modify or set aside any decision of LIRC. This bill extends from one year to 2 years the period during which determinations and decisions may be set aside, amended or reopened under the circumstances currently provided. The bill also permits DWD to set aside or amend an initial determination at any time if DWD determines that the benefits paid or payable to a claimant have been affected by wages earned by the claimant which have not been paid, and DWD is provided with notice from the appropriate state or federal court or agency that a wage claim for those wages will not be paid in whole or in part, unless a party has filed a timely request for a hearing concerning that determination. Similarly, the bill permits an appeal tribunal to set aside a decision of the appeal tribunal at any time (unless a party has filed a timely petition for review of the decision with LIRC), and permits LIRC to set aside a final determination of DWD or a decision of an appeal tribunal or LIRC at any time (regardless of whether an appeal or petition for review has been filed) under similar circumstances if the appeal tribunal or LIRC is provided with similar notice of an unpaid wage claim. In addition, the bill permits DWD to set aside or amend any decision of an appeal tribunal adverse to a claimant that has been issued within the 4-year period preceding the day the bill becomes law, and permits DWD to reverse, modify or set aside any decision of LIRC adverse to a claimant that has been issued within that period, if DWD finds that the benefits paid or payable to the claimant have been affected by wages earned by the claimant which have not been paid, and DWD is provided with notice from the appropriate state or federal court or agency that a wage claim for those wages will not be paid in whole or in part, unless a timely petition for review by LIRC has been filed or a timely action for judicial review has been commenced.

Coverage of Wisconsin service corps and Wisconsin conservation corps employes

Under current state laws governing the Wisconsin service corps (WSC) and the Wisconsin conservation corps (WCC), no corps enrollee in the WSC and no corps member or assistant crew leader in the WCC is eligible for unemployment compensation benefits by virtue of his or her employment in the corps. Conflicting provisions of the same laws provide that to the extent permitted by federal law, the WSC and WCC programs shall be considered work-relief and work-training programs for the purpose of determining eligibility for unemployment compensation benefits.

Under current state law governing the unemployment compensation program, no corps member or assistant crew leader in the WCC is eligible for unemployment compensation benefits by virtue of his or her employment in the WCC. In addition, an individual serving in a position receiving work relief or work training as a part of a work-training or work-relief program assisted or funded by a state agency is not eligible for unemployment compensation benefits based on such service except as the agency otherwise elects with the approval of DWD. This provision is based on federal law, which generally requires states participating in the federal-state unemployment compensation program to provide benefits for employes of state agencies except, if a state elects, for individuals performing service as a part of an unemployment work-relief or work-training program assisted or funded by a state agency if the individuals receive work relief or work training under the program [26 USC 3309 (b) (5)]. "Work relief" and "work training" are interpreted by DWD in accordance with standards imposed by the U.S. department of labor.

This bill deletes the provisions of current state laws governing the WSC and WCC programs. In addition, the bill deletes the provision of current state law governing the unemployment compensation program specifying that a corps member or assistant crew leader in the WCC is ineligible to receive unemployment compensation benefits by virtue of his or her employment in the WCC, but retains the disqualification for individuals receiving state-assisted work relief or work training.

Other

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:

SB327, s. 1 Section 1. 6.10 (9) of the statutes is amended to read:

SB327,8,4 6.10 (9) No person loses the right to vote at the person's place of residence while receiving public assistance or unemployment compensation insurance even if the legal settlement for assistance is elsewhere.

SB327, s. 2 Section 2. 15.227 (3) of the statutes, as affected by 1997 Wisconsin Act 3, is amended to read:

SB327,9,9 15.227 (3) (title) Council on unemployment compensation insurance. There is created in the department of workforce development a council on unemployment compensation insurance appointed by the secretary of workforce development to consist of 5 representatives of employers and 5 representatives of employes appointed to serve for 6-year terms and a permanent classified employe of the department of workforce development who shall serve as nonvoting chairperson. In making appointments to the council, the secretary shall give due consideration to achieving balanced representation of the industrial, commercial, construction, nonprofit and public sectors of the state's economy. One of the employer representatives shall be an owner of a small business or a representative of an association primarily composed of small businesses. In this subsection, "small business" means an independently owned and operated business which is not dominant in its field and which has had less than $2,000,000 in gross annual sales for each of the previous 2 calendar years or has 25 or fewer employes. A member vacates his or her office if the member loses the status upon which his or her appointment is based.

SB327, s. 3 Section 3. 16.48 (1) (a) (intro.) of the statutes is amended to read:

SB327,9,13 16.48 (1) (a) (intro.) A statement of unemployment compensation insurance financial outlook, which shall contain the following, together with the secretary's recommendations and an explanation for such recommendations:

SB327, s. 4 Section 4. 16.48 (1) (a) 1., 2. and 6. and (b) of the statutes are amended to read:

SB327,9,18 16.48 (1) (a) 1. Projections of unemployment compensation insurance operations under current law through at least the 2nd year following the close of the biennium, including benefit payments, tax collections, borrowing or debt repayments and amounts of interest charges, if any.

SB327,9,20 2. Specific proposed changes in the laws relating to unemployment compensation insurance financing, benefits and administration.

SB327,9,22 6. If unemployment compensation insurance program debt is projected at the end of the forecast period, the reasons why it is not proposed to liquidate the debt.

SB327,9,24 (b) A report summarizing the deliberations of the council on unemployment compensation insurance and the position of the council, if any, concerning each proposed change in the unemployment compensation insurance laws submitted under par. (a).

SB327, s. 5 Section 5. 16.48 (2) and (3) of the statutes, as affected by 1997 Wisconsin Act 3, are amended to read:

SB327,10,12 16.48 (2) Upon receipt of the statement and report under sub. (1), the governor may convene a special committee consisting of the secretary of workforce development and the legislative leaders specified in sub. (1) to review the statement and report. Upon request of 2 or more of the legislative leaders specified in sub. (1), the governor shall convene such a committee. The committee shall attempt to reach a consensus concerning proposed changes to the unemployment compensation insurance laws and shall submit its recommendations to the governor and legislature concurrently with the statement furnished under sub. (3).

SB327,10,18 (3) On or about February 15 of each odd-numbered year, the secretary of workforce development, under the direction of the governor, shall submit to each member of the legislature an updated statement of unemployment compensation insurance financial outlook which shall contain the information specified in sub. (1) (a), together with the governor's recommendations and an explanation for such recommendations, and a copy of the report required under sub. (1) (b).

SB327, s. 6 Section 6. 19.85 (1) (ee) of the statutes is amended to read:

SB327,10,22 19.85 (1) (ee) Deliberating by the council on unemployment compensation insurance in a meeting at which all employer members of the council or all employe members of the council are excluded.

SB327, s. 7 Section 7. 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

SB327, s. 8 Section 8 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 612, is amended to read:

SB327,11,14 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22 and assessments under s. 108.19 (1m), all moneys not appropriated under pars. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20, and for the payment of career counseling center grants under s. 106.14.

SB327, s. 9 Section 9 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 612m, is amended to read:

SB327,12,14 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20, and for payment of career counseling center grants under s. 106.14.

SB327, s. 10 Section 10 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 613, is amended to read:

SB327,13,3 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20.

SB327, s. 11 Section 11. 20.445 (1) (gf) of the statutes is amended to read:

SB327,13,12 20.445 (1) (gf) Employment security administration. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22, the amounts in the schedule for the administration of employment service programs and unemployment compensation insurance programs under ch. 108 and s. 106.09 and federal or state unemployment compensation insurance programs authorized by the governor under s. 16.54; and for payments to satisfy any federal audit exception concerning a payment from the unemployment reserve fund or any federal aid disallowance involving the unemployment compensation insurance program.

SB327, s. 12 Section 12. 20.445 (1) (gg) of the statutes is created to read:

SB327,13,17 20.445 (1) (gg) Unemployment information technology systems; interest and penalties. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22, as a continuing appropriation, the amounts in the schedule for the purpose specified in s. 108.19 (1e).

SB327, s. 13 Section 13. 20.445 (1) (gh) of the statutes is created to read:

SB327,13,23 20.445 (1) (gh) Unemployment information technology systems; assessments. All moneys received from assessments levied under s. 108.19 (1e) and 1997 Wisconsin Act .... (this act), section 164 (2), for the purpose specified in s. 108.19 (1e). The treasurer of the unemployment reserve fund may transfer moneys from this appropriation account to the appropriation account under par. (gd).

SB327, s. 14 Section 14. 20.445 (1) (n) of the statutes is amended to read:

SB327,14,11 20.445 (1) (n) Unemployment administration; federal moneys. All federal moneys received for the employment service under s. 106.09 (4) to (6) or, for the administration of unemployment compensation under ch. 108, and any federal moneys paid to the department insurance or for the performance of its the department's functions under ch. 108, and for its conduct of public employment offices consistent with s. 106.09 (4) to (6), and for its other efforts to regularize employment;, to pay the compensation and expenses of appeal tribunals and of councils; and to pay allowances stimulating education during unemployment, to be used for such purposes, and to transfer to par. (nb) an amount determined by the treasurer of the unemployment reserve fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nb).

SB327, s. 15 Section 15. 20.445 (1) (nb) of the statutes is created to read:

SB327,14,24 20.445 (1) (nb) Unemployment information technology systems; federal moneys. The amounts in the schedule, as authorized by the governor for this purpose under s. 16.54, for the purpose specified in s. 108.19 (1e). All moneys transferred from par. (n) for this purpose shall be credited to this appropriation account. Notwithstanding s. 20.001 (3) (a), the treasurer of the unemployment reserve fund shall transfer any unencumbered balance in this appropriation account that is not needed or available to carry out the purpose of this appropriation to the appropriation account under par. (n). No moneys may be expended from this appropriation unless the treasurer of the unemployment reserve fund determines that such expenditure is currently needed for the purpose specified in s. 108.19 (1e). No moneys may be encumbered from this appropriation account after the beginning of the 3rd 12-month period beginning after the effective date of this paragraph .... [revisor inserts date].

SB327, s. 16 Section 16. 40.02 (22) (b) 3. of the statutes is amended to read:

SB327,15,1 40.02 (22) (b) 3. Unemployment compensation insurance benefits.

SB327, s. 17 Section 17. 40.65 (5) (b) 2. of the statutes is amended to read:

SB327,15,4 40.65 (5) (b) 2. Any unemployment compensation insurance benefit payable to the participant because of his or her work record.

SB327, s. 18 Section 18. 45.71 (9) (a) of the statutes is amended to read:

SB327,15,9 45.71 (9) (a) Part-time or overtime pay, unemployment compensation insurance and income of the veteran's spouse are considered income only if the department or authorized lender deems such sources of income to be regular and dependable.

SB327, s. 19 Section 19. 46.27 (5) (i) of the statutes is amended to read:

SB327,16,5 46.27 (5) (i) In the instances in which an individual who is provided long-term community support services under par. (b) for which the individual receives direct funding, serve directly as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for that individual for the purposes of performing the responsibilities and protecting the interests of the individual under the unemployment compensation insurance law. The county department or aging unit may elect to act as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for an individual who is provided long-term support services under s. 46.275, 46.277, 46.278, 46.495, 51.42 or 51.437. The fiscal agent under this paragraph is responsible for remitting any federal unemployment compensation taxes or state unemployment compensation insurance contributions owed by the individual, including any interest and penalties which are owed by the individual; for serving as the representative of the individual in any investigation, meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (26 USC 3301 to 3311) in which the individual is a party; and for receiving, reviewing, completing and returning all forms, reports and other documents required under ch. 108 or the federal unemployment tax act on behalf of the individual. An individual may make an informed, knowing and voluntary election to waive the right to a fiscal agent. The waiver may be as to all or any portion of the fiscal agent's responsibilities. The waiver may be rescinded in whole or in part at any time.

SB327, s. 20 Section 20. 47.035 (1) of the statutes is amended to read:

SB327,16,22 47.035 (1) Except as authorized in sub. (2) if an individual receives direct funding for personal assistance services that are provided to the individual under s. 47.02 (4) (c), and the services are provided through a county department of human services or social services or an aging unit, the county department or aging unit through which the services are provided shall serve directly as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for that individual for the purposes of performing the responsibilities and protecting the interests of the individual under the unemployment compensation insurance law. The fiscal agent under this subsection is responsible for remitting any federal unemployment compensation taxes or state unemployment compensation insurance contributions owed by the individual, including any interest and penalties which are owed by the individual; for serving as the representative of the individual in any investigation, meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (26 USC 3301 to 3311) in which the individual is a party; and for receiving, reviewing, completing and returning all forms, reports and other documents required under ch. 108 or the federal unemployment tax act on behalf of the individual.

SB327, s. 21 Section 21. 49.19 (4) (dm) 4. of the statutes is amended to read:

SB327,16,25 49.19 (4) (dm) 4. Qualifies for unemployment compensation insurance but refuses to apply for or accept unemployment compensation insurance; or

SB327, s. 22 Section 22. 59.40 (2) (e) of the statutes is amended to read:

SB327,17,5 59.40 (2) (e) Keep a judgment and lien docket of all money judgments of the court, transcripts from judgment and lien dockets of other Wisconsin courts and of federal courts, warrants for unemployment compensation insurance and warrants for delinquent Wisconsin income or franchise taxes.

SB327, s. 23 Section 23. 59.57 (2) (b) of the statutes is amended to read:

SB327,18,11 59.57 (2) (b) Findings. It is found and declared that industries located in this state have been induced to move their operations in whole or in part to, or to expand their operations in, other states to the detriment of state, county and municipal revenue arising through the loss or reduction of income and franchise taxes, real estate and other local taxes, and thereby causing an increase in unemployment; that such conditions now exist in certain areas of the state and may well arise in other areas; that economic insecurity due to unemployment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state; that such unemployment results in obligations to grant public assistance and in the payment of unemployment compensation insurance; that the absence of new economic opportunities has caused workers and their families to migrate elsewhere to find work and establish homes, which has resulted in a reduction of the tax base of counties, cities and other local governmental jurisdictions impairing their financial ability to support education and other local governmental services; that security against unemployment and the preservation and enhancement of the tax base can best be provided by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing; that there is a need to stimulate a larger flow of private investment funds from banks, investment houses, insurers and other financial institutions; that means are necessary under which counties so desiring may create instrumentalities to promote industrial development and such purpose requires and deserves support from counties as a means of preserving the tax base and preventing unemployment. It is therefore declared to be the policy of this state to promote the right to gainful employment, business opportunities and general welfare of the inhabitants thereof and to preserve and enhance the tax base in counties and municipalities by the creation of bodies, corporate and politic, which shall exist and operate for the purpose of fulfilling the aims of this subsection and such purposes are hereby declared to be public purposes for which public money may be spent and the necessity in the public interest for the provisions herein enacted is declared a matter of legislative determination.

SB327, s. 24 Section 24. 66.30 (6) (c) 1. of the statutes is amended to read:

SB327,18,19 66.30 (6) (c) 1. Provide for acquisition, construction, operation and administration of a facility, and establish the functions, projects and services to be provided in the facility, including, without limitation because of enumeration, proration of all expenses involved, operational and fiscal management including deposit and disbursement of funds appropriated, designation of the municipal employer for purposes of compliance with s. 111.70, teacher retirement, worker's compensation and unemployment compensation insurance.

SB327, s. 25 Section 25. 66.30 (6) (h) of the statutes is amended to read:

SB327,19,2 66.30 (6) (h) School district boards entering into a contract under this subsection shall designate for each employe providing services under the contract either a school district entering into the contract or a cooperative educational service agency under ch. 116 as the employer for purposes of compliance with s. 111.70, teacher's retirement, worker's compensation and unemployment compensation insurance.

SB327, s. 26 Section 26. 66.521 (1) (a) of the statutes is amended to read:

SB327,20,5 66.521 (1) (a) It is found and declared that industries located in this state have been induced to move their operations in whole or in part to, or to expand their operations in, other states to the detriment of state, county and municipal revenue raising through the loss or reduction of income and franchise taxes, real estate and other local taxes, and thereby causing an increase in unemployment; that such conditions now exist in certain areas of the state and may well arise in other areas; that economic insecurity due to unemployment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state; that unemployment results in obligations to grant public assistance and in the payment of unemployment compensation insurance; that the absence of new economic opportunities has caused workers and their families to migrate elsewhere to find work and establish homes, which has resulted in a reduction of the tax base of counties, cities and other local governmental jurisdictions impairing their financial ability to support education and other local governmental services; that security against unemployment and the preservation and enhancement of the tax base can best be provided by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing; that there is a need to stimulate a larger flow of private investment funds from banks, investment houses, insurance companies and other financial institutions. It is therefore declared to be the policy of this state to promote the right to gainful employment, business opportunities and general welfare of the inhabitants thereof and to preserve and enhance the tax base by authorizing municipalities to acquire industrial buildings and to finance such acquisition through the issuance of revenue bonds for the purpose of fulfilling the aims of this section and such purposes are hereby declared to be public purposes for which public money may be spent and the necessity in the public interest for the provisions herein enacted is declared a matter of legislative determination.

SB327, s. 27 Section 27. 71.05 (6) (a) 12. of the statutes is amended to read:

SB327,21,10 71.05 (6) (a) 12. All alimony deducted for federal income tax purposes and paid while the individual paying the alimony was a nonresident of this state; all penalties for early withdrawals from time savings accounts and deposits deducted for federal income tax purposes and paid while the individual charged with the penalty was a nonresident of this state; all repayments of supplemental unemployment compensation benefits benefit plan payments deducted for federal income tax purposes and made while the individual making the repayment was a nonresident of this state; all reforestation expenses related to property not in this state, deducted for federal income tax purposes and paid while the individual paying the expense was not a resident of this state; all contributions to individual retirement accounts, simplified employe pension plans and self-employment retirement plans and all deductible employe contributions, deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's wages and net earnings from a trade or business taxable by this state and the denominator of which is the individual's total wages and net earnings from a trade or business; the contributions to a Keogh plan deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; the amount of health insurance costs of self-employed individuals deducted under section 162 (L) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; and the amount of self-employment taxes deducted under section 164 (f) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or a business.

SB327, s. 28 Section 28. 71.52 (6) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB327,23,2 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment compensation insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB327, s. 29 Section 29. 71.67 (7) (title) of the statutes is amended to read:

SB327,23,4 71.67 (7) (title) Withholding from unemployment compensation insurance.

SB327, s. 30 Section 30. 71.67 (7) (a) of the statutes, as affected by 1997 Wisconsin Act 3, is amended to read:

SB327,23,12 71.67 (7) (a) The department of workforce development may, in accordance with s. 108.135, deduct and withhold from any unemployment compensation insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6).

SB327, s. 31 Section 31. 71.67 (7) (b) 2. of the statutes is amended to read:

SB327,23,15 71.67 (7) (b) 2. The gross amount of unemployment compensation insurance that is subject to withholding under par. (a).

SB327, s. 32 Section 32 . 71.80 (16) (a) of the statutes is amended to read: