AB294: Bill Text

AB294,11,3 (d) "Part-time employee" means an employee who is employed by a participating employer to work less than 2,080 hours per year, including paid leave and holidays, and whose principal place of employment is in this state.

AB294,11,5 (e) "Participating employee" means an eligible employee who participates in a lifelong learning accounts program under this section.

AB294,11,7 (f) "Participating employer" means an employer that participates in a lifelong learning accounts program under this section.

AB294,11,9 (g) "Plan" means a lifelong learning account plan that is approved by the department under sub. (2).

AB294,11,17 (h) "Qualified education expenses" means expenses for tuition and fees, books, equipment, and tools or supplies that may be retained by a participating employee relating to a course of instruction provided by a postsecondary educational institution that is accredited to the satisfaction of the department and moneys transferred from a participating employee's account to the participating employee's account established under the plan of another participating employer. "Qualified education expenses" does not include expenses for meals, lodging, transportation, or any course or other instruction involving sports, games, or hobbies.

AB294,11,18 (2) The department shall approve a plan that satisfies all of the following:

AB294,11,19 (a) Is in writing.

AB294,11,22 (b) Covers at least all full-time employees of the participating employer and, if the participating employer elects to cover part-time employees under the plan, all part-time employees.

AB294,11,23 (c) Provides for voluntary participation by eligible employees.

AB294,12,11 (d) 1. Establishes an account for each participating employee to which the participating employee makes contributions for the payment of qualified education expenses and the participating employer may make matching contributions for the payment of those expenses. A participating employer that makes matching contributions under this subdivision shall base those contributions on a percentage of a participating employee's annual contribution and shall apply the same percentage to each participating employee. The combined contributions of the participating employee and participating employer may not exceed $5,000 annually. A participating employee or participating employer may not make contributions to an account that has a balance of more than $25,000. A participating employee who has multiple accounts may not contribute to any account if the aggregate balance of all accounts is more than $25,000. The account shall be owned by the participating employee.

AB294,12,14 2. a. In this subdivision, "consumer price index" means the average of the consumer price index for all urban consumers, U.S. city average, as determined by the bureau of labor statistics of the U.S. department of labor.

AB294,12,25 b. Except as provided in this subd. 2. b., beginning on July 1, 2011, and on each July 1 after that, the department shall adjust the annual contribution and aggregate balance limits under subd. 1. by calculating the percentage difference between the consumer price index for the 12-month period ending on December 31 of the preceding year and the consumer price index for the 12-month period ending on December 31 of the year before the preceding year and adjusting those limits by that percentage difference. The department shall publish the adjusted limits calculated under this subd. 2. b. in the Wisconsin Administrative Register. This subd. 2. b. does not apply if the consumer price index for the 12-month period ending on December 31 of the preceding year did not increase over the consumer price index for the 12-month period ending on December 31 of the year before the preceding year.

AB294,13,3 (e) Except as provided in sub. (5), provides that the account shall be used to pay qualified education expenses incurred by a participating employee for education selected at the sole discretion of the participating employee.

AB294,13,5 (f) Provides procedures for the dissemination of information about the plan, including the federal and state income tax consequences of the plan.

AB294,13,6 (3) The department shall approve an account that satisfies all of the following:

AB294,13,7 (a) Is established and administered in accordance with a plan.

AB294,13,10 (b) Except as provided in sub. (5), is used to pay qualified education expenses incurred by a participating employee for education selected at the sole discretion of the participating employee.

AB294,13,12 (c) Is held by a trustee or fiduciary, including the state treasurer, as approved by the department.

AB294,13,14 (4) A participating employer shall provide information to the department that the department determines is necessary to approve a plan or account.

AB294,13,18 (5) A participating employee may withdraw the participating employee's contribution to the account at any time for any purpose. If an amount is withdrawn for a purpose other than to pay qualified education expenses under sub. (2) (e) or (3) (b), the account shall incur a penalty under s. 71.05 (6) (a) 25.

AB294,13,21 (6) The department shall establish a program to provide information to participating employers and eligible employees about the lifelong learning accounts program established under this section.

AB294,13,23 (7) The department shall promulgate rules establishing a procedure for the approval of plans under sub. (2) and accounts under sub. (3).

Note: This Section creates the lifelong learning accounts program. DWD must establish a procedure to approve plans and accounts under the program.

A plan or account must be approved by DWD if it satisfies the criteria outlined in this Section. A participating employer must provide information to DWD that DWD determines is necessary for approval of a plan or account. DWD must establish a program to provide information to participating employers and eligible employees about the lifelong learning accounts program.

A participating employee may withdraw the participating employee's contribution to the account at any time for any purpose. Generally, however, if an amount is withdrawn for a purpose other than to pay qualified education expenses, the account incurs a penalty. "Qualified education expenses" is defined in this Section as expenses for tuition and fees, books, equipment, and tools or supplies that may be retained by the employee relating to a course of instruction provided by a postsecondary educational institution that is accredited to the satisfaction of DWD and moneys transferred from a participating employee's account to the participating employee's account established under the plan of another participating employer. "Qualified education expenses" does not include expenses for meals, lodging, transportation, or any course or other instruction involving sports, games, or hobbies.

AB294, s. 21 Section 21 . Nonstatutory provisions.

AB294,14,9 (1) Submission of proposed rules. The department of workforce development shall submit in proposed form the rules required under section 106.115 (7) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than the first day of the 4th month beginning after the effective date of this subsection. Notwithstanding section 227.137 (2) of the statutes, the secretary of administration may not require the department of workforce development to prepare an economic impact report for the rules required under section 106.115 (7) of the statutes, as created by this act.

Note: This Section requires that DWD submit proposed rules regarding the approval procedure for plans and accounts under the lifelong learning accounts program to the Legislative Council staff by the first day of the 4th month beginning after the effective date of this Section. [Section 22 provides that the effective date of this Section is the day after publication of the act.]

Current law provides that, under certain circumstances, the Secretary of the Department of Administration (DOA) may direct an agency to prepare an economic impact report for a proposed rule before the proposed rule is submitted to the legislature for review. [s. 227.137 (2), stats.] This Section provides that the Secretary of DOA may not require that DWD prepare an economic impact report for these proposed rules.

AB294, s. 22 Section 22 . Effective dates. This act takes effect on the first day of the 12th month beginning after publication, except as follows:

AB294,14,12 (1) Section 21 (1 ) of this act takes effect on the day after publication.

Note: This Section provides that the act is effective on the first day of the 12th month beginning after publication, except that the provision requiring that DWD submit proposed rules is effective on the day after publication of the act.

AB294,15,1 (End)