LRB-1905/1
GMM/JK/PG:jd:rs
2005 - 2006 LEGISLATURE
June 28, 2005 - Introduced by Representative Schneider. Referred to Committee
on Labor.
AB528,2,2
1An Act to amend 20.928 (1), 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1)
2(g), 71.45 (2) (a) 10. and 77.92 (4); and
to create 20.445 (1) (sq), 20.865 (1) (sq),
325.17 (1) (az), 25.99, 71.07 (3w), 71.10 (4) (cp), 71.28 (3w), 71.30 (3) (dm), 71.47
4(3w), 71.49 (1) (dm), 77.52 (2) (a) 21., 77.67, 111.365 and 121.91 (4) (L) of the
5statutes;
relating to: prohibiting discrimination between an employee
6employed in a job that is dominated by employees of a particular sex and an
7employee employed in a job that is dominated by employees of the opposite sex
8in compensation paid for work that is of comparable worth; providing tax
9credits, grants, and appropriation supplements to employers that pay a wage
10differential to end discrimination in compensation paid for work that is of
11comparable worth; increasing the revenue limit of a school district that pays a
12wage differential to end discrimination in compensation paid for work that is
1of comparable worth; imposing a sales and use tax on legal services; granting
2rule-making authority; and making appropriations.
Analysis by the Legislative Reference Bureau
Introduction
This bill prohibits discrimination between an employee employed in a job that
is dominated by employees of a particular sex and an employee employed in a job that
is dominated by employees of the opposite sex in compensation paid for work that is
of comparable worth; provides tax credits, grants, and appropriation supplements to
employers that pay a wage differential to end discrimination in compensation paid
for work that is of comparable worth; increases the revenue limit of a school district
that pays a wage differential to end discrimination in compensation paid for work
that is of comparable worth; and imposes a sales and use tax on legal services to fund
the grants and appropriation supplements provided under the bill.
Equal pay for work of comparable worth
Under current law, no employer may discriminate against any individual on the
basis of sex where sex is not a bona fide occupational qualification. Currently,
employment discrimination because of sex includes discriminating against any
individual in compensation paid for equal or substantially similar work on the basis
of sex.
This bill specifies that, beginning on January 1, 2016, employment
discrimination because of sex also includes discriminating between an employee
employed in a job that is dominated by employees of a particular sex and an employee
employed in a job that is dominated by employees of the opposite sex in compensation
paid for work that is of comparable worth, as measured by the composite of the skill,
effort, and responsibility normally required in the performance of the work and the
conditions under which the work is normally performed. The bill also prohibits an
employer from achieving compliance with the bill by reducing the compensation of
any employee or reducing the rate of compensation for any position and prohibits a
labor organization from causing an employer to discriminate against an employee in
violation of the bill. The bill, however, does not prohibit the payment of different
compensation to employees when that compensation is calculated under a bona fide
seniority system, a merit system, or a system that measures earnings by quality or
quantity of production.
Tax benefits, grants, and appropriation supplements
The bill allows an employer subject to state income taxation that achieves
compliance with the bill before January 1, 2016, to apply for tax credits, a local
governmental unit that achieves compliance with the bill before January 1, 2016, to
apply for a grant, and a state agency that achieves compliance with the bill before
January 1, 2016, to apply for an appropriation supplement in the amount of the
difference between the amount of wages paid to achieve that compliance and the
amount of the wages that the employer, local governmental unit, or state agency
would have paid, but for achieving that compliance (wage differential). To obtain a
tax credit, grant, or appropriation supplement, an employer, local governmental
unit, or state agency must submit an application and a plan for achieving compliance
to the Department of Workforce Development (DWD) that includes all of the
following:
1. Information relating to the job classifications in which the applicant's
employees are placed and the wage rates paid for those job classifications and
documentation of the method, system, calculations, or other bases used to determine
the wage rates for the applicant's job classifications.
2. An evaluation of the comparable worth of the applicant's job classifications,
as measured by the skill, effort, and responsibility normally required in the
performance of the work and the conditions under which the work is normally
performed.
3. The amount of the wage differential that the applicant is paying or proposes
to pay to achieve compliance with the bill.
4. Any other information required by DWD or the Department of Revenue.
Under the bill, no employer may receive a tax credit for any taxable year that
begins on or after January 1, 2016, no local governmental unit provided a grant
under the bill may use those grant moneys to pay a wage differential for any work
performed after December 31, 2015, and no state agency may use an appropriation
supplement provided under the bill to pay a wage differential for any work performed
after December 31, 2015.
Sales and use tax on legal services
To fund the grants to local governmental units and the appropriation
supplements to state agencies, the bill imposes a sales and use tax on legal services,
places those tax moneys in a separate trust fund established under the bill that is
designated as the comparable worth fund, and appropriates those moneys for grants
to local governmental units, appropriation supplements for state agencies, and
administration of the program of tax benefits, grants, and appropriation
supplements created under the bill.
School district revenue limit increase
Current law generally limits the total amount of revenue that a school district
may receive from general school aids, including equalization aid, and property taxes.
Several exceptions to the revenue limit exist. For example, the revenue limit is
increased if a school district becomes responsible for performing additional services
that are transferred from another school district.
This bill provides that, if DWD approves a school district's plan for achieving
compliance with the bill, the school district's revenue limit is increased by an amount
that is equal to the wage differential paid by the school district. The revenue limit
increase does not apply after the 2015-16 school year.
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:
AB528, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB528, s. 2
3Section
2. 20.445 (1) (sq) of the statutes is created to read:
AB528,4,84
20.445
(1) (sq)
Comparable worth; grants; administration. From the
5comparable worth fund, all moneys not appropriated under s. 20.865 (1) (sq) for
6grants to local governmental units under s. 111.365 (4) (b) and for the cost of
7administering the program of tax credits, grants, and appropriation supplements
8under s. 111.365 (3) to (5).
AB528, s. 3
9Section
3. 20.865 (1) (sq) of the statutes is created to read:
AB528,4,1310
20.865
(1) (sq)
Comparable worth; wage differentials. From the comparable
11worth fund, the amounts in the schedule to supplement the appropriations to state
12agencies certified under s. 111.365 (5) (b) for the cost of paying wage differentials, as
13defined in s. 111.365 (1) (c), to achieve compliance with s. 111.365 (2) (a).
AB528, s. 4
14Section
4. 20.928 (1) of the statutes is amended to read:
AB528,5,7
120.928
(1) Each state agency head shall certify to the department of
2administration, at such time and in such manner as the secretary of administration
3prescribes, the sum of money needed by the state agency from the appropriations
4under s. 20.865 (1) (c), (ci), (cj), (d), (i), (ic), (j), (s), (si)
, (sq), and (t). Upon receipt of
5the certifications together with such additional information as the secretary of
6administration prescribes, the secretary shall determine the amounts required from
7the respective appropriations to supplement state agency budgets.
AB528, s. 5
8Section
5. 25.17 (1) (az) of the statutes is created to read:
AB528,5,99
25.17
(1) (az) Comparable worth fund (s. 25.99);
AB528, s. 6
10Section
6. 25.99 of the statutes is created to read:
AB528,5,13
1125.99 Comparable worth fund. There is established a separate nonlapsible
12trust fund designated as the comparable worth fund, to consist of all sales and use
13taxes on legal fees collected under s. 77.52 (2) (a) 21.
AB528, s. 7
14Section
7. 71.05 (6) (a) 15. of the statutes is amended to read:
AB528,5,1915
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
16(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t),
(3w), (5b), and (5d)
17and not passed through by a partnership, limited liability company, or tax-option
18corporation that has added that amount to the partnership's, company's, or
19tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB528, s. 8
20Section
8. 71.07 (3w) of the statutes is created to read:
AB528,5,2321
71.07
(3w) Comparable worth credit. (a)
Definition. In this subsection,
22"claimant" means a person who files a claim under this subsection and who is
23certified to receive tax benefits under s. 111.365 (3).
AB528,6,424
(b)
Filing claims. For taxable years beginning after December 31, 2005, and
25before January 1, 2016, subject to the limitations provided under this subsection and
1s. 111.365 (3), a claimant may claim as a credit against the tax imposed under s. 71.02
2or 71.08, up to the amount of the tax, an amount equal to the amount of the wage
3differential the claimant paid to the claimant's employees to achieve compliance with
4s. 111.365 (2) (a).
AB528,6,125
(c)
Limitations. Partnerships, limited liability companies, and tax-option
6corporations may not claim the credit under this subsection, but the eligibility for,
7and the amount of, the credit are based on their payment of amounts described under
8par. (b). A partnership, limited liability company, or tax-option corporation shall
9compute the amount of credit that each of its partners, members, or shareholders
10may claim and shall provide that information to each of them. Partners, members
11of limited liability companies, and shareholders of tax-option corporations may
12claim the credit in proportion to their ownership interests.
AB528,6,1413
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
14s. 71.28 (4), applies to the credit under this subsection.
AB528, s. 9
15Section
9. 71.10 (4) (cp) of the statutes is created to read:
AB528,6,1616
71.10
(4) (cp) Comparable worth credit under s. 71.07 (3w).
AB528, s. 10
17Section
10. 71.21 (4) of the statutes is amended to read:
AB528,6,2018
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
19(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t),
(3w), and (5b) and passed through
20to partners shall be added to the partnership's income.
AB528, s. 11
21Section
11. 71.26 (2) (a) of the statutes is amended to read:
AB528,7,1422
71.26
(2) (a)
Corporations in general. The "net income" of a corporation means
23the gross income as computed under the Internal Revenue Code as modified under
24sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
25computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
17., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
2under this paragraph at the time that the taxpayer first claimed the credit plus the
3amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
4(1ds), (1dx), (3g), (3n), (3t),
(3w), and (5b) and not passed through by a partnership,
5limited liability company, or tax-option corporation that has added that amount to
6the partnership's, limited liability company's, or tax-option corporation's income
7under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other
8disposition of assets the gain from which would be wholly exempt income, as defined
9in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus
10deductions, as computed under the Internal Revenue Code as modified under sub.
11(3), plus or minus, as appropriate, an amount equal to the difference between the
12federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
13otherwise disposed of in a taxable transaction during the taxable year, except as
14provided in par. (b) and s. 71.45 (2) and (5).
AB528, s. 12
15Section
12. 71.28 (3w) of the statutes is created to read:
AB528,7,1816
71.28
(3w) Comparable worth credit. (a)
Definition. In this subsection,
17"claimant" means a person who files a claim under this subsection and who is
18certified to receive tax benefits under s. 111.365 (3).
AB528,7,2419
(b)
Filing claims. For taxable years beginning after December 31, 2005, and
20before January 1, 2016, subject to the limitations provided under this subsection and
21s. 111.365 (3), a claimant may claim as a credit against the tax imposed under s.
2271.23, up to the amount of the tax, an amount equal to the amount of the wage
23differential the claimant paid to the claimant's employees to achieve compliance with
24s. 111.365 (2) (a).
AB528,8,8
1(c)
Limitations. Partnerships, limited liability companies, and tax-option
2corporations may not claim the credit under this subsection, but the eligibility for,
3and the amount of, the credit are based on their payment of amounts described under
4par. (b). A partnership, limited liability company, or tax-option corporation shall
5compute the amount of credit that each of its partners, members, or shareholders
6may claim and shall provide that information to each of them. Partners, members
7of limited liability companies, and shareholders of tax-option corporations may
8claim the credit in proportion to their ownership interests.
AB528,8,109
(d)
Administration. Subsection (4) (e) to (h), as it applies to the credit under
10sub. (4), applies to the credit under this subsection.
AB528, s. 13
11Section
13. 71.30 (3) (dm) of the statutes is created to read:
AB528,8,1212
71.30
(3) (dm) Comparable worth credit under s. 71.28 (3w).
AB528, s. 14
13Section
14. 71.34 (1) (g) of the statutes is amended to read:
AB528,8,1614
71.34
(1) (g) An addition shall be made for credits computed by a tax-option
15corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
16(3n), (3t),
(3w), and (5b) and passed through to shareholders.
AB528, s. 15
17Section
15. 71.45 (2) (a) 10. of the statutes is amended to read:
AB528,8,2318
71.45
(2) (a) 10. By adding to federal taxable income the amount of credit
19computed under s. 71.47 (1dd) to (1dx), (3n),
(3w), and (5b) and not passed through
20by a partnership, limited liability company, or tax-option corporation that has added
21that amount to the partnership's, limited liability company's, or tax-option
22corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit
23computed under s. 71.47 (1), (3), (3t), (4), and (5).
AB528, s. 16
24Section
16. 71.47 (3w) of the statutes is created to read:
AB528,9,3
171.47
(3w) Comparable worth credit. (a)
Definition. In this subsection,
2"claimant" means a person who files a claim under this subsection and who is
3certified to receive tax benefits under s. 111.365 (3).
AB528,9,94
(b)
Filing claims. For taxable years beginning after December 31, 2005, and
5before January 1, 2016, subject to the limitations provided under this subsection and
6s. 111.365 (3), a claimant may claim as a credit against the tax imposed under s.
771.43, up to the amount of the tax, an amount equal to the amount of the wage
8differential the claimant paid to the claimant's employees to achieve compliance with
9s. 111.365 (2) (a).