Wisconsin Legislature: 35,67

108.16 (8) (f) The successor shall take over and continue the transferor's account, including its positive or negative balance and all other aspects of its experience under this chapter,. If the transfer included less than 100% of the transferor's total assets on the date of the transfer, the department shall allocate the transferor's experience to the successor in proportion to the payroll assignable to the transferred business. The and the liability of the successor shall be proportioned to the extent of the transferred business. The transferor and the successor shall be jointly and severally liable for any amounts owed by the transferor to the fund and to the administrative account at the time of the transfer, but a successor under par. (c) is not liable for the debts of the transferor except in the case of fraud or malfeasance.

35,57 Section 57. 108.16 (8) (L) of the statutes is created to read:

108.16 (8) (L) A professional employer organization is not considered to be the successor to the employer account of its client under this section by virtue of engaging the prior employees of the client to perform services for the client under an employee leasing agreement.

35,58 Section 58. 108.17 (2) of the statutes is amended to read:

108.17 (2) Every employer that is subject to a contribution requirement shall file quarterly reports of contributions required under this chapter with the department, and pay contributions to the department, for such periods and in such manner as the department prescribes. Each contribution report and payment is due at the close of the month next following the end of the applicable reporting period calendar quarter, except as authorized in sub. (2c) or as the department may assign a later due date pursuant to sub. (1m) or general department rules.

35,59 Section 59. 108.17 (2c) of the statutes is created to read:

108.17 (2c) (a) Except as provided in pars. (d) and (e), an employer that has a first quarter contribution liability of $5,000 or more may defer payment to later due dates beyond the due date established under sub. (1m) or (2) of not more than 60% of its first quarter contribution liability, without payment of interest, as follows:

1. The employer shall pay at least 30% of the first quarter contribution liability on or before July 31 of the year in which the liability accrues.

2. The employer shall pay at least an additional 20% of the first quarter contribution liability on or before October 31 of the year in which the liability accrues.

3. The employer shall pay any remaining balance of the first quarter contribution liability on or before January 31 of the year after the year in which the liability accrues.

(b) An employer that elects to defer a payment under par. (a) may pay more than the specified minimum deferred amount or all of the deferred amount at any time before the due date under par. (a).

(c) If an employer fails to pay at least the specified minimum deferred amount for the first quarter, together with the full amount of contributions payable for any subsequent quarter, by a specified due date, then all unpaid contribution liability of that employer for the first quarter is delinquent under s. 108.22 and interest thereon is payable from April 30 of the year in which the liability accrues.

(d) If an employer fails to pay at least 40% of its first quarter contribution liability on or before April 30 of the year in which the liability accrues, the employer is not permitted to defer the balance of the liability under this subsection.

(e) An employer is not permitted to defer its first quarter contribution liability under this subsection for any year unless the employer pays all delinquent contributions, together with any interest, penalties, and fees assessed under this chapter, prior to April 30 of the year in which the liability accrues.

35,60 Section 60. 108.17 (2g) of the statutes is created to read:

108.17 (2g) An employer agent that files reports under sub. (2) on behalf of 25 or more employers shall file those reports using an electronic medium and format approved by the department. An employer agent that becomes subject to the reporting requirement under this subsection shall file its initial reports under this subsection for the 4th quarter beginning after the quarter in which the employer agent becomes subject to the reporting requirement. Once an employer agent becomes subject to the reporting requirement under this subsection, the employer agent shall continue to file its reports under this subsection unless that requirement is waived by the department.

35,61 Section 61. 108.19 (1e) (a) and (d) of the statutes are amended to read:

108.19 (1e) (a) Except as provided in par. (b), each employer, other than an employer which that finances benefits by reimbursement in lieu of contributions under s. 108.15 or, 108.151, or 108.152 shall, in addition to other contributions payable under s. 108.18 and this section, pay an assessment to the administrative account for each year prior to the year 2002 2004 equal to the lesser of 0.01% of its payroll for that year or the solvency contribution that would otherwise be payable by the employer under s. 108.18 (9) for that year.

(d) The department may expend the moneys received from assessments levied under this subsection for the renovation and modernization of the unemployment insurance information technology systems, including the tax and accounting system, and specifically including development and implementation of a new system and reengineering of automated processes and manual business functions.

35,62 Section 62. 108.19 (1m) of the statutes is amended to read:

108.19 (1m) Each employer subject to this chapter as of the date a rate is established under this subsection shall pay an assessment to the administrative account at a rate established by the department sufficient to pay interest due on advances from the federal unemployment account under title XII of the social security act (42 USC 1321 to 1324). The rate established by the department for employers who finance benefits under s. 108.15 (2) or , 108.151 (2), or 108.152 (1) shall be 75% of the rate established for other employers. The amount of any employer's assessment shall be the product of the rate established for that employer multiplied by the employer's payroll of the previous calendar year as taken from quarterly contribution reports filed by the employer or, in the absence of the filing of such reports, estimates made by the department. Each assessment made under this subsection is due on the 30th day commencing after the date on which notice of the assessment is mailed by the department. If the amounts collected under this subsection are in excess of the amounts needed to pay interest due, the amounts shall be retained in the administrative account and utilized for the purposes specified in s. 108.20 (2m).

35,63 Section 63. 108.20 (3) of the statutes is amended to read:

108.20 (3) There shall be included in the moneys governed by sub. (2m) any amounts collected by the department under ss. 108.04 (11) (c) and (cm) and 108.22 (1) (a) and, (ac), and (ad) as tardy filing fees, forfeitures, interest on delinquent payments, or other penalties and any excess moneys collected under s. 108.19 (1m).

35,64 Section 64. 108.22 (1) (ad) of the statutes is created to read:

108.22 (1) (ad) An employer agent that is subject to the reporting requirements under s. 108.17 (2g) and that fails to file a contribution report in accordance with s. 108.17 (2g) may be assessed a penalty by the department in the amount of $25 for each employer whose report is not filed using an electronic format and medium approved by the department.

35,65 Section 65. 108.22 (1) (am) of the statutes is amended to read:

108.22 (1) (am) The interest, penalties, and the tardy filing fees levied under par. pars. (a), (ac), and (ad) shall be paid to the department and credited to the administrative account.

35,66 Section 66. 108.22 (1) (b) of the statutes is amended to read:

108.22 (1) (b) If the due date of a report or payment under s. 108.15 (5) (b), 108.151 (5) (f), 108.16 (8), 108.17 (2), or 108.205 would otherwise be a Saturday, Sunday, or legal holiday under state or federal law, the due date is the next following day which is not a Saturday, Sunday, or legal holiday under state or federal law.

35,67 Section 67. 108.22 (1) (e) of the statutes is amended to read:

108.22 (1) (e) Any notice filed under s. 108.15 (3) (a) or (b) or, 108.151 (3) (a), or 108.152 (2) (a) or assurance filed under s. 108.151 (2) (a) or (4) (a) 2. is timely if it is received by the department by December 31 or, if mailed, is either postmarked no later than that due date or is received by the department no later than 3 days after that due date.

35,68 Section 68. 108.22 (1m) of the statutes is amended to read:

108.22 (1m) If an employer owes any contributions, reimbursements under s. 108.15 or 108.151, interest or, fees, or payments for forfeitures or other penalties to the department under this chapter and fails to pay the amount owed, the department has a perfected lien upon the employer's right, title, and interest in all of its real and personal property located in this state in the amount finally determined to be owed, plus costs. Except where creation of a lien is barred or stayed by bankruptcy or other insolvency law, the lien is effective when the department issues a determination of the amount owed under s. 108.10 (1) and shall continue until the amount owed, plus costs and interest to the date of payment, is paid. If a lien is initially barred or stayed by bankruptcy or other insolvency law, it shall become effective immediately upon expiration or removal of such bar or stay. The perfected lien does not give the department priority over lienholders, mortgagees, purchasers for value, judgment creditors, and pledges whose interests have been recorded before the department's lien is recorded.

35,69 Section 69. 108.225 (1) (a) to (c) of the statutes are amended to read:

108.225 (1) (a) "Contributions" include "Contribution" includes a reimbursement under s. 108.15, 108.151, or 108.152, interest for a nontimely payment, fees, and any penalties payment due for a forfeiture imposed upon an employing unit under s. 108.04 (11) (c) or other penalty assessed by the department under this chapter.

(b) "Debt" means a delinquent contribution or repayment of a benefit overpayment, or any liability of a 3rd party for failure to surrender to the department property or rights to property subject to levy after proceedings under sub. (4) (b) and s. 108.10 to determine that liability.

35,70 Section 70. 108.225 (16) (intro.) of the statutes is amended to read:

108.225 (16) Wages exempt from levy. (intro.) In the case of benefit overpayments, the and forfeitures imposed upon an employing unit under s. 108.04 (11) (c), an individual debtor is entitled to an exemption from levy of the greater of the following:

35,71 Section 71. 230.12 (1) (g) of the statutes is created to read:

230.12 (1) (g) Temporary reserve appeal tribunal. The compensation plan shall include a provision authorizing the department of workforce development to pay any individual who was previously employed by the department of workforce development and who is appointed to limited term employment as a temporary reserve appeal tribunal under s. 108.09 (3) (a) 2. not more than the base pay rate that the individual was paid at the time of his or her separation from the department of workforce development, plus any across-the-board and discretionary intervening adjustments that were made under the compensation plan or applicable collective bargaining agreement to the base pay rate for the position that was previously filled by the individual during the time between the individual's separation from the department of workforce development and the individual's appointment as a temporary reserve tribunal. For the purpose of calculating the amount of any discretionary intervening adjustment, the amount shall be limited to the amount that would have been generated by the employee.

35,72 Section 72. Nonstatutory provisions.

(1) Offset of social security benefits.

(a) In this Section:

1. "Base period wages" has the meaning given in section 108.02 (4m) of the statutes.

2. "Employer" has the meaning given in section 108.02 (13) of the statutes.

(b) Notwithstanding section 108.04 (7), 1999 stats., for each week of unemployment beginning in 2002, if a claimant receives a payment under the federal Social Security Act (42 USC 301, et seq.) that is contributed to by an employer from which the claimant has base period wages, the reduction that applies to the benefits payable to the claimant for that week is 50% of the amount that would otherwise apply for that week under section 108.04 (7), 1999 stats.

(2) Rule making.

(a) The department of workforce development shall submit in proposed form rule changes to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 11th month beginning after the effective date of this paragraph:

1. To amend section DWD 100.02 (28), Wisconsin Administrative Code, for the purpose of decreasing the number of hours per week, for work to be considered full time, to 32.

2. To establish a specified level of repeated absenteeism or repeated tardiness that constitutes misconduct for purposes of section 108.04 (5) of the statutes.

3. To specify, in accordance with applicable administrative and judicial interpretations, what constitutes an "establishment" for purposes of the disqualification from receipt of unemployment insurance benefits because of a labor dispute in an establishment in which an employee is or was employed under section 108.04 (10) of the statutes.

(b) The department of workforce development shall promulgate an emergency rule under section 227.24 of the statutes to amend section DWD 129.01 (1), Wisconsin Administrative Code, for the purpose of extending the deadline for filing an initial claim for unemployment insurance benefits by 7 days. Notwithstanding section 227.24 (1) (c) and (2) of the statutes, the emergency rule may remain in effect until the first day of the 11th month beginning after the effective date of this paragraph or until the date on which a permanent rule relating to the same subject matter takes effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the statutes, the department is not required to provide evidence that promulgating a rule under this paragraph as an emergency rule is necessary for the preservation of the public peace, health, safety, or welfare and is not required to provide a finding of emergency for a rule promulgated under this paragraph.

(3) Initial election of reimbursement financing by Indian tribes and tribal units. Notwithstanding section 108.152 (1) (a) of the statutes, as created by this act, an Indian tribe or tribal unit may file a written notice of election of reimbursement financing for unemployment insurance benefits under that paragraph for the 2002 calendar year no later than March 31, 2002.

(4) Initial reports by professional employer organizations. Notwithstanding section 108.067 (1) of the statutes, as created by this act, each professional employer organization that has entered into an employee leasing agreement with any client that is in effect on March 31, 2002, shall disclose in its initial report under section 108.067 (1) of the statutes, as created by this act, the identity of each client with whom the organization has an employee leasing agreement on that date.

(5) Deferral of first quarter contribution liability. Notwithstanding section 74 (9) of this act, if the secretary of workforce development determines that the necessary programming enhancements for the unemployment insurance tax and accounting system have not been completed in time to permit implementation of the treatment of sections 108.17 (2) and (2c) and 108.22 (1) (b) of the statutes by this act with respect to contributions payable for the first quarter of the 2003 calendar year, the secretary may order implementation of that treatment to occur with respect to contributions payable for the first quarter of the 2004 calendar year.

(6) Claimant eligibility reviews. The department of workforce development shall, through reallocation of existing resources of the department, conduct review of claimants for unemployment compensation benefits in the 2001-03 fiscal biennium to verify adherence to work search requirements and other conditions of eligibility.

(7) Position authorizations. The authorized FTE positions for the department of workforce development are increased by 15.0 FED positions for the period ending on June 30, 2004, to be funded from the appropriation under section 20.445 (1) (n) of the statutes, for the purpose of assisting with unemployment insurance information technology projects.

35,73 Section 73. Appropriation changes.

(1) In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of workforce development under section 20.445 (1) (gf) of the statutes, as affected by the acts of 2001, the dollar amount is increased by $250,000 for fiscal year 2001-02 to pay employment service costs for which federal aid was disallowed.

35,74 Section 74 . Initial applicability.

(1) The treatment of sections 108.02 (10m), (13) (a), (15) (f) (intro.), (g) (intro.), (gm), and (n), (17m), and (22m), 108.04 (13) (d) 4. (intro.) and (17) (b) and (h), 108.141 (7) (c), 108.152, 108.16 (6) (g), (6m) (a) and (8) (b) 3, (c) 3., and (e) 3., 108.19 (1e) (a) (with respect to reimbursement financing by Indian tribes and tribal units) and (1m), and 108.22 (1) (e) of the statutes first applies with respect to employment after December 31, 2001.

(2) The treatment of sections 108.02 (12m) (intro.), (a), (b), (c), (d), and (e), (21e), and (29), 108.065 (1) and (1m), and 108.16 (8) (L) of the statutes first applies with respect to determinations issued under sections 108.09 and 108.10 of the statutes in the first week beginning in January 2002 or, in relation to determinations that are appealed, to decisions issued under sections 108.09 and 108.10 of the statutes in the first week beginning in January 2002.

(3) The treatment of section 108.02 (15) (j) 4., 5., and 6. of the statutes first applies to services performed after December 31, 1998.

(4) The treatment of section 108.02 (15) (k) 18. c., 19. b., and 20., (20g), (21c), and (23g) of the statutes first applies to with respect to employment after December 31, 2001.

(5) The treatment of section 108.04 (7) (h) and (8) (c) of the statutes first applies with respect to determinations issued under section 108.09 or 108.10 of the statutes on December 30, 2001.

(6) The treatment of section 108.05 (7) (a) 1. and (f) 1. of the statutes first applies to weeks of unemployment beginning on January 5, 2003.

(7) The treatment of sections 108.17 (2g), 108.20 (3), and 108.22 (1) (ad) and (am) of the statutes first applies with respect to reports due for the reporting period or calendar quarter that includes March 31, 2003.

(8) The treatment of section 108.16 (8) (b) (intro.) and 2., (c) 4., (e) 4., and (f) first applies to partial transfers of businesses occurring after December 31, 2001, and to transfers of businesses of which the department of workforce development receives notice after January 31, 2002.

(9) The treatment of sections 108.17 (2) and (2c) and 108.22 (1) (b) of the statutes first applies with respect to contributions payable for the first quarter of the 2003 calendar year.

(10) The treatment of section 108.22 (1m) of the statutes first applies with respect to liabilities that accrue on the effective date of this subsection.

(11) The treatment of section 108.225 (1) (a) to (c) and (16) (intro.) of the statutes first applies with respect to determinations issued under section 108.10 of the statutes on the effective date of this subsection.

35,75 Section 75. Effective dates. This act takes effect on the first Sunday after publication, except as follows:

(1) The treatment of section 108.067 (1) of the statutes takes effect on April 1, 2002.

(2) The treatment of section 108.067 (2) of the statutes takes effect on January 1, 2002.