AB516: Bill Text

The bill requires the higher educational aids board (HEAB), by January 1, 2002, to study and report on the cost, desirability, and effectiveness of creating a student loan forgiveness program to attract workers to the state.

Jobs Skills Training Program Report

The bill requires DWD to collect information concerning the availability of basic job skills training programs in the state and periodically prepare reports identifying those programs for distribution to local workforce development boards, job centers, and other appropriate organizations. To the extent practicable, the reports must identify available training programs by region.

TAX INCENTIVES

Productivity Enhancement Training Tax Credit

The bill provides a nonrefundable business tax credit for expenses incurred by a business to provide certain training to the business's employees. The credit equals 100% of the business's certified training expenses, up to a maximum of $7,500 per year. Eligible training expenses include up to $2,000 incurred for pre-training assessment and consultation services. The credit may not be claimed for amounts deducted by the business under the Internal Revenue Code as ordinary and necessary business expenses. Unused credits may be carried forward for up to 15 years. Under the bill, sole proprietorships, corporations, and insurers may claim the credit. Partnerships, limited liability companies, and tax option corporations compute the credit but pass it on to the partners, members, and shareholders in proportion to their ownership interests.

The purpose of the credit is to encourage businesses to provide training to their employees to improve productivity and to promote, and provide workers for, high-skill and high-wage jobs.

To qualify for the credit, the department of commerce must certify the business's productivity enhancement training expenses. To be eligible to have its expenses certified, the business must submit to the department of commerce a productivity enhancement training plan designed to: (1) increase employee productivity; and (2) result in employees holding jobs in the business that require higher degrees of skill to perform and that pay higher wages than their current jobs. In addition, the business must receive pre-training needs assessment and consultation from an experienced provider of productivity assessments, as approved by the department of commerce. Finally, the business must submit an accounting of its productivity enhancement training expenses so that the department of commerce may determine if the expenses were incurred under the training plan.

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

The tax credit is available for taxable years beginning after December 1, 2000. No business may be certified for tax credits for any taxable year beginning after December 31, 2009.

Apprenticeship Tax Credit

The bill creates an income tax and franchise tax credit for an employer that pays wages to an apprentice who is participating in a two-year to five-year apprenticeship program in which the apprentice is receiving instruction leading to qualification as a skilled journeyman in any industrial manufacturing trade, any private sector service occupation, or certain construction trades. The amount of the credit is five percent of the wages that are paid to an apprentice in a taxable year, but cannot exceed $1,400, except that, in the taxable year in which the apprentice completes the apprenticeship program, the amount of the credit is eight percent of the wages that are paid to an apprentice, but cannot exceed $3,000. An employer will not receive the credit unless the employer enters into an agreement with DWD permitting DWD to post on DWD's Internet site the employer's name and address and the number of apprentices and journeymen that the employer employs during the year. Generally, no employer may claim the credit for taxable years beginning after December 31, 2004, if the number of employers training apprentices does not increase by more than 40% from January 1, 2002, to December 31, 2004.

Education Tax Credit

The bill creates an income tax and franchise tax credit for businesses that pay tuition for an individual to attend a university, college, or technical college. Sole proprietorships, corporations, and insurers may claim the credit. Partnerships, limited liability companies, and tax-option corporations compute the credit but pass it on to the partners, members, and shareholders in proportion to their ownership interests. The credit is an amount equal to: (1) 50% of the tuition paid by a business for an individual to attend school in a taxable year, if the individual is enrolled in a degree-granting program; and (2) 75% of the tuition paid by a business for an individual to attend school in a taxable year, if the individual is enrolled in a degree-granting program and if the individual's taxable income is not more than 185% of the federal poverty line. If the credit claimed by a business exceeds the business's tax liability, the state will not issue a refund check, but the business may carry forward any remaining credit to subsequent taxable years.

Development Zone Tax Credits

Under current law, a person may claim an income tax credit for up to 50% of the person's environmental remediation expenses incurred in a development zone. Under current law, the credit may not be transferred between persons, and a municipality or nonprofit organization that engages in remedial remediation activities in a development zone may not claim a credit.

This bill provides that any person eligible to claim a credit for remediation expenses incurred in a development zone may transfer the right to claim the credit to any other person subject to taxation in this state. In addition, the bill provides that a person may claim a credit for 50% of the amount expended by a municipality or a tax-exempt or nonprofit organization for environmental remediation in a development zone, if the municipality or organization has entered into an exclusive written agreement with the person claiming the credit. The bill requires DOR to promulgate rules implementing the credit transfer provisions.

TRAINING AND EDUCATION

Job Training Access Policies

The bill requires every public educational institution in the state to have a policy regarding access to their facilities by local organizations and businesses for the purpose of employment-related training. If the policy allows for such access, the policy shall set a reasonable cost. The policy may allow access based on the availability of space and the appropriateness of the training and only insofar as access would be consistent with the institution's mission.

Trade Master's Pilot Program

Under current law, $50,000 is provided in fiscal year 2001-02 for DWD to provide a trade master's pilot program to recognize advanced training and postapprenticeship achievements in three trades, crafts, or businesses, one of which must be in the industrial sector, one in the construction sector, and one in the service sector of the economy.

This bill requires DWD, in selecting the trades, crafts, or businesses to be included in the pilot program, to seek to maximize participation in the pilot program of minority group members. The bill also requires DWD to submit to the legislature by July 1, 2004, an evaluation of the effectiveness of the program. In addition, the bill appropriates $110,000 in fiscal year 2001-02 and $120,000 in fiscal year 2002-03 to increase the full-time equivalent positions authorized for DWD by one position for the implementation and development of the program.

Workplace Diversity Grant Program

The bill creates a workplace diversity grant program administered by DWD. Under the program, local, nonprofit organizations that offer diversity training, basic employment skills development, or instruction in English as a second language to employees and to persons seeking employment may qualify for grants.

A local, nonprofit organization is qualified for a grant if any of the following apply:

(1) The governing body of the local, nonprofit organization is comprised of representatives of private sector employers and local government units or agencies, and the local, nonprofit organization assists local employers in meeting their workforce needs.

(2) The local, nonprofit organization assists persons who have been convicted of a crime, whether employed or not, in strengthening or developing their employment skills and in making or easing their transition from incarceration to work.

(3) The local nonprofit organization assists any of the following persons, whether employed or not, in preparing for or gaining entry into the skilled trades: (a) persons eligible for the Wisconsin works program (commonly referred to as "W-2"); (b) military veterans; (c) persons who have been convicted of a crime; (d) persons eligible for food stamps; and (e) minority group members.

DWD must attempt to award grants to eligible organizations from different geographic regions of the state. The bill appropriates $120,000 for the grants in fiscal year 2001-02 and limits the amount of a grant to any given organization to $30,000.

Applications for the grants must be received by December 1, 2001, and the grants must be awarded by January 1, 2002.

The bill requires DWD, by September 1, 2002, to report on the grant program, including the uses made of the grants. The report must recommend whether the program should be funded in the next biennium and, if continued funding is recommended, the report must recommend an appropriate funding level and any changes that should be made to the program.

Job Retention Skills Development Program

The bill requires each technical college district board to make available, and offer at a frequency based upon demand in the district, a job retention skills development program to assist employers to retain new employees, build the job skill levels of those employees, and assist those employees to attain higher wages and long-term careers. To the extent practicable, the program must be provided at employment sites.

The program must emphasize job retention skills development for employees with incomes at or below 200% of the federal poverty line who are current or former recipients of public assistance, employees in the first six months of employment with their employer, and entry-level employees.

In supervising and establishing minimum requirements for the program, the state technical college system board (state board) must consult with employers, technical college district boards (district boards), W-2 agencies, local units of government, and labor organizations. The program must include elements relating to the skills needed to show up for work on time, to work effectively in a team, to communicate with supervisors and coworkers, and to solve basic job-related personal and interpersonal problems.

The bill requires the state board, in consultation with employers, district boards, and DWD, to develop standards to assess the job retention and skills competencies of participants before and after participation in the program. The program expires on December 31, 2004.

Further, the bill requires district boards to assist employers in providing ongoing job retention skills development and reinforcement activities in the work place. The bill also allows district boards to charge employers a fee for the program and services offered to employers. Under the bill, $200,000 of federal temporary assistance for needy families block grant funds is used to implement the program.

Finally, the bill requires W-2 agencies to coordinate case management services that are provided to W-2 participants in unsubsidized employment with the job retention skills development program.

Nursing Student Loan Forgiveness Program

Under current law, $450,000 is appropriated in fiscal year 2002-03 for HEAB to make loans to defray the cost of tuition, fees, and expenses for persons enrolled in a program in this state that confers an associate degree, a bachelor's degree, or a diploma, in nursing or that confers a second degree that will make the person eligible to take the nursing licensure examination. The maximum amount of loans that a person may receive during a fiscal year is $3,000, and the maximum total amount of loans that a person may receive is $15,000. After the loan recipient has completed the program, HEAB must forgive 25% of the loan's principal and interest after the first full year, and 25% of the loan's principal and interest after the second full year, that the loan recipient has been employed full time in this state as a nurse.

This bill requires HEAB, to the extent possible, to make those loans to persons who are likely to work in the nursing profession in this state upon completion of the program and who demonstrate a financial need for the loan. The bill also requires HEAB, in making the loans, to give priority to persons who are minority group members and who reside in urban areas of this state that have unemployment rates higher than the state average. In addition, the bill requires HEAB to forgive 50% of the loan's principal and interest after the third full year that the loan recipient has been employed full time in this state as a nurse.

Preapprenticeship Basic Skills Training

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

OTHER

Occupational Driver's License Fee

Prior to passage of 1999 Wisconsin Act 9, the biennial budget act, a person could have his or her operating privileges suspended for failing to pay a judgment for an ordinance violation unrelated to the person's operation of a motor vehicle. Although Act 9 repealed this authority, the act did not restore operating privileges to persons who had their operating privileges suspended prior to Act 9. Under current law, a person whose operating privilege is suspended for failing to pay a judgment for an ordinance violation is not eligible to apply for an occupational driver's license.

This bill allows a person whose operating privilege was suspended solely for failing to pay a judgment for an ordinance violation unrelated to the operation of a motor vehicle to apply for an occupational driver's license upon payment of a $10 fee. This fee represents a reduction from the $40 application fee generally charged for an occupational license.

Apprenticeship Marketing Program

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

AB516, s. 1 Section 1. 15.227 (14) of the statutes is created to read:

AB516,7,8 15.227 (14) Apprenticeship marketing council. There is created in the department of workforce development an apprenticeship marketing council appointed by the secretary of workforce development. The council shall consist of 4 members appointed for 3-year terms who represent the interests of employees, 4 members appointed for 3-year terms who represent the interests of employers, and 2 employees of the department of workforce development to serve at the pleasure of the secretary.

AB516, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB516, s. 3 Section 3. 20.292 (1) (kd) of the statutes is created to read:

AB516,7,15 20.292 (1) (kd) Job retention skills development programs. All moneys transferred from the appropriation account under s. 20.445 (3) (md) for job retention skills development programs under s. 38.34. No moneys may be encumbered from this appropriation after June 30, 2003.

AB516, s. 4 Section 4. 20.445 (1) (d) of the statutes is created to read:

AB516,7,18 20.445 (1) (d) Workplace diversity grant program. The amounts in the schedule for workplace diversity grants under s. 106.28.

AB516, s. 5 Section 5. 20.445 (3) (md) of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB516,8,10 20.445 (3) (md) Federal block grant aids. The amounts in the schedule, less the amounts withheld under s. 49.143 (3), for aids to individuals or organizations and to be transferred to the appropriation accounts under ss. 20.255 (2) (kh) and (kp), 20.292 (1) (kd), 20.433 (1) (k), 20.434 (1) (kp) and (ky), 20.435 (3) (kc), (kd), (km), and (ky), (5) (ky), (7) (ky), and (8) (kx), 20.465 (4) (k), and 20.835 (2) (kf). All block grant moneys received for these purposes from the federal government or any of its agencies and all moneys recovered under s. 49.143 (3) shall be credited to this appropriation account.

AB516, s. 6 Section 6. 36.11 (1) (cg) of the statutes is created to read:

AB516,8,17 36.11 (1) (cg) The board shall ensure that each institution and college campus establishes a written policy regarding the use of classrooms and facilities by local organizations and businesses for employment-related training. The policy may condition access on payment of a reasonable fee, the availability of space, and the appropriateness of the training. The policy may limit access to activities that are consistent with the mission of the institution or college campus.

AB516, s. 7 Section 7. 38.14 (2) (e) of the statutes is created to read:

AB516,8,24 38.14 (2) (e) Each district board shall establish a written policy regarding the use of classrooms and facilities by local organizations and businesses for employment-related training. The policy may condition access on payment of a reasonable fee, the availability of space, and the appropriateness of the training. The policy may limit access to activities that are consistent with the mission of the technical college.

AB516, s. 8 Section 8. 38.34 of the statutes is created to read:

AB516,9,9 38.34 Job retention skills development programs. (1) Each district board shall make available, and shall offer at a frequency based upon demand in the district, a job retention skills development program in order to assist employers to retain new employees, build job skill levels of those employees, and assist those employees in attaining higher wages and long-term careers. To the extent practicable, the district board shall offer the program at employment sites. The program shall emphasize job retention skills development for employees with gross incomes at or below 200% of the poverty line, as defined in s. 49.001 (5), who are any of the following:

AB516,9,11 (a) Current or former recipients of public assistance, including participants in Wisconsin works employment positions under s. 49.147.

AB516,9,13 (b) Employees who are within the first 6 months of employment with their employer.

AB516,9,14 (c) Entry-level employees.

AB516,9,15 (2) The program shall provide training in all of the following:

AB516,9,17 (a) Skills needed to achieve punctuality and consistency in attendance at the employee's employment.

AB516,9,18 (b) Skills needed to effectively work in a team.

AB516,9,19 (c) Skills needed to effectively communicate with supervisors and coworkers.

AB516,9,21 (d) Skills needed to solve basic workplace-related personal and interpersonal problems.

AB516,9,24 (3) (a) The board shall supervise, and establish minimum requirements for, the program. Except as provided in sub. (2), the board shall determine the length and content of the program after consultation with employers, district boards, Wisconsin works agencies, as defined in s. 49.001 (9), local units of government, and labor organizations.

AB516,10,6 (b) In consultation with employers, district boards, and the department of workforce development, the board shall develop standards for assessing the job retention skills, including the skills specified in sub. (2), of employees before and after their participation in the program.

AB516,10,10 (4) To the extent practicable, the district board shall assist employers in providing ongoing job retention skills development and reinforcement activities in the workplace. The district board may charge employers a fee for the program and services offered under this section.

AB516,10,11 (5) This section does not apply after December 31, 2004.

AB516, s. 9 Section 9. 39.393 (2) of the statutes, as created by 2001 Wisconsin Act 16, is amended to read:

AB516,11,2 39.393 (2) Beginning in the 2002-03 fiscal year, the board shall make loans under this section from the appropriation account under s. 20.235 (1) (cm). To the extent possible, the board shall make loans under this section to persons who are likely to work in the nursing profession in this state upon completion of the program under sub. (1) and who demonstrate a financial need for the loan. In making loans under this section, the board shall give priority to persons who are minority group members, as defined in s. 560.036 (1) (f), and who reside in urban areas of this state that have unemployment rates higher than the state average. The maximum amount of loan for a person all loans that a person may receive under this section during any fiscal year is $3,000. The maximum total amount of all loans that a person may receive under this section is $15,000. The board shall ensure that the terms of the loan do not require a loan recipient to repay the loan while the recipient is enrolled in a program under sub. (1).

AB516, s. 10 Section 10. 39.393 (3) of the statutes, as created by 2001 Wisconsin Act 16, is amended to read:

AB516,11,10 39.393 (3) After the recipient of a loan under sub. (1) has completed the program described in sub. (1), the board shall forgive 25% of the loan's principal and interest after the first full year and, 25% of the loan's principal and interest after the 2nd full year, and 50% of the loan's principal and interest after the 3rd full year that the recipient has been employed full time in this state as a nurse. The board may forgive loans on a prorated basis for persons who are employed less than full time.

AB516, s. 11 Section 11. 49.1475 of the statutes is amended to read:

AB516,11,24 49.1475 Follow-up services. Following any follow-up period required by the contract entered into under s. 49.143, a Wisconsin works agency may provide case management services for an individual who moves from a Wisconsin works employment position to unsubsidized employment to help the individual retain the unsubsidized employment. Case management services may include the provision of employment skills training; English as a 2nd language classes, if the Wisconsin works agency determines that the course will facilitate the individual's efforts to retain employment; a course of study meeting the standards established under s. 115.29 (4) for the granting of a declaration of equivalency of high school graduation; or other remedial education courses. A Wisconsin works agency shall coordinate case management services with a program offered by a technical college under s. 38.34. The Wisconsin works agency may provide case management services regardless of the individual's income and asset levels.

AB516, s. 12 Section 12. 49.175 (1) (zp) of the statutes is created to read:

AB516,12,4 49.175 (1) (zp) Job retention skills development programs. For the transfer of moneys to the technical college system board for implementation costs for job retention skills development programs under s. 38.34, $200,000 in fiscal year 2001-02.

AB516, s. 13 Section 13. 71.05 (6) (a) 15. of the statutes, as affected by 2001 Wisconsin Act 16, is amended to read:

AB516,12,11 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), and (3s), (5d), (5r), and (5v) not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB516, s. 14 Section 14. 71.07 (5d) of the statutes is created to read:

AB516,12,14 71.07 (5d) Industrial, service, and skilled trades apprenticeship credit. (a) In this subsection: