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2013 - 2014 LEGISLATURE
May 24, 2013 - Introduced by Representative Knodl, cosponsored by Senator
Lasee. Referred to Committee on Labor.
AB219,3,14 1An Act to repeal 108.02 (4m) (g), 108.02 (13) (kL), 108.04 (1) (i), 108.05 (1) (n)
2to (p), 108.06 (7) and 108.07 (8); to renumber 50.498 (4) and 108.02 (10e) (a)
3and (b); to renumber and amend 108.02 (10e) (intro.) and 440.12; to
4consolidate, renumber and amend
16.48 (1) (intro.) and (a) (intro.); to
5amend
13.63 (1) (b), 13.63 (1) (c), 16.48 (1) (b), 16.48 (3), 19.55 (2) (d), 29.024
6(2r) (title), 29.024 (2r) (c), 29.024 (2r) (d) 1., 48.66 (2m) (c), 48.715 (7), 50.498
7(title), 50.498 (2), 50.498 (5), 51.032 (title), 51.032 (2), 51.032 (4), 51.032 (5),
871.78 (4) (o), 73.0301 (2) (c) 2., 73.0302 (title), 73.09 (6m), 101.02 (20) (b), 101.02
9(20) (c), 101.02 (20) (d), 102.17 (1) (c), 103.005 (10), 103.275 (2) (b) (intro.),
10103.275 (7) (b), 103.275 (7) (c), 103.34 (3) (c), 103.34 (10) (title), 103.92 (3),
11104.07 (1) and (2), 105.13 (1), 108.02 (4m) (a), 108.02 (13) (a), 108.04 (1) (f),
12108.04 (1) (g) (intro.), 108.04 (1) (hm), 108.04 (2) (a) 3. c., 108.04 (8) (a) and (c),
13108.05 (1) (q) (intro.), 108.05 (2) (c), 108.05 (3) (a), 108.06 (1), 108.06 (2) (c),
14108.06 (2) (cm), 108.06 (3), 108.06 (6) (intro.), 108.10 (intro.), 108.14 (8n) (e),

1108.14 (19), 108.141 (7) (a), 108.16 (2) (g) and (h), 108.16 (6m) (a), 108.16 (8) (b)
24., 108.205 (1), 108.21 (1), 108.22 (1) (a), 108.22 (8) (c) 1. a., 108.225 (1) (b),
3115.31 (6m), 118.19 (1m) (a), 118.19 (1m) (b), 138.09 (1m) (b) 2. a., 138.09 (3)
4(am) 2., 138.09 (4) (c), 138.12 (3) (d) 2. a., 138.12 (5) (am) 1. b., 138.12 (5) (am)
53., 138.14 (4) (a) 2. a., 138.14 (9) (d), 146.40 (4d) (b), 146.40 (4d) (d), 146.40 (4d)
6(e), 169.35 (title), 169.35 (2), 169.35 (3), 170.12 (3m) (b) 1., 217.05 (1m) (b) 1.,
7217.09 (4), 217.09 (6), 218.0114 (21e) (a), 218.0114 (21g) (b) 1., 218.0116 (1g) (b),
8218.02 (2) (a) 2. a., 218.04 (3) (a) 2. a., 218.04 (5) (b), 218.05 (3) (am) 2. a., 218.05
9(12) (b), 218.05 (12) (e), 218.11 (2) (am) 3., 218.12 (2) (am) 2., 218.21 (2m) (b),
10218.31 (1m) (b), 218.41 (2) (am) 2., 218.51 (3) (am) 2., 224.72 (2) (c) 2. a., 224.725
11(2) (b) 1. a., 224.927 (1), 227.53 (1) (a) 3., 252.241 (title), 252.241 (2), 254.115
12(title), 254.115 (2), 254.176 (5), 254.20 (7), 256.18 (title), 256.18 (2), 256.18 (5),
13299.07 (title), 299.07 (1) (b) 1., 299.08 (1) (b) 2., 341.51 (4g) (b), 342.06 (1) (eg),
14343.14 (1), 343.14 (2j), 343.305 (6) (e) 3. b., 343.61 (2) (b), 343.62 (2) (b), 343.69
15(1), 440.03 (11m) (c), 452.18, 551.412 (4g) (a) 1., 551.605 (2), 562.05 (8m) (a),
16562.05 (8m) (b), 563.285 (title), 563.285 (2) (a), 563.285 (2) (b), 628.095 (4) (b),
17628.097 (title), 628.097 (2m), 628.10 (2) (cm), 632.69 (2) (c), 632.69 (2) (d) 2.,
18632.69 (4) (d), 633.14 (2c) (b), 633.14 (2m) (b), 633.15 (2) (d), 751.155 (title),
19751.155 (1), 751.155 (2) and 751.155 (3); to repeal and recreate 108.05 (1) (q)
20(intro.), 108.05 (1) (r) (intro.) and 108.05 (3) (a); and to create 20.445 (1) (gm),
2150.498 (4) (b), 73.0302 (5), 73.0302 (6), 73.09 (8), 102.17 (1) (ct), 103.275 (2) (bt),
22103.34 (10) (d), 103.91 (4) (d), 103.92 (8), 104.07 (7), 105.13 (4), 108.02 (10e)
23(bm), 108.02 (15) (kt), 108.04 (2) (a) 4., 108.04 (2) (g), 108.04 (2) (h), 108.04 (12)
24(f), 108.04 (15), 108.05 (1) (r), 108.14 (20), 108.14 (21), 108.14 (22), 108.14 (23),
25108.14 (24), 108.14 (25), 108.14 (26), 108.16 (3) (c), 108.16 (6) (o), 108.16 (6m)

1(h), 108.22 (1) (cm), 108.22 (8e), 108.223, 108.227, 108.245, 138.12 (4) (a) 1m.,
2138.12 (4) (b) 5m., 138.14 (5) (b) 2m., 138.14 (9) (cm), 170.12 (8) (b) 1. bm., 170.12
3(8) (b) 4., 217.06 (5m), 217.09 (1t), 218.0116 (1m) (a) 2m., 218.0116 (1m) (d),
4218.02 (3) (dm), 218.02 (6) (d), 218.02 (9) (a) 1m., 218.04 (4) (am) 2m., 218.04
5(5) (at), 218.05 (4) (c) 2m., 218.05 (11) (bm), 218.05 (12) (at), 218.11 (6m) (c),
6218.12 (3m) (c), 218.22 (3m) (c), 218.32 (3m) (c), 218.41 (3m) (b) 3., 218.51 (4m)
7(b) 3., 224.44, 224.72 (7m) (bm), 224.725 (6) (bm), 224.77 (2m) (e), 224.95 (1)
8(bm), 252.241 (5), 254.115 (5), 256.18 (4m), 299.07 (3), 341.51 (4m) (c), 343.305
9(6) (e) 6., 343.66 (3m), 440.12 (2), 551.406 (6) (a) 1m., 551.412 (4g) (a) 2m.,
10551.412 (4g) (d), 562.05 (5) (a) 11., 562.05 (8) (f) and 563.285 (1m) of the statutes;
11relating to: various changes in the unemployment insurance law; license
12revocations based on delinquency in payment of unemployment insurance
13contributions; granting rule-making authority; providing a penalty; and
14making an appropriation.
Analysis by the Legislative Reference Bureau
This bill makes various changes in the unemployment insurance (UI) law.
Significant changes include:
Benefit amounts
Currently, weekly UI benefit rates for total unemployment range from $54 for
an employee who earns wages (or certain other amounts treated as wages) of at least
$1,350 during at least one quarter of the employee's base period (period preceding
a claim during which benefit rights accrue) to $363 for an employee who earns wages
(or certain other amounts treated as wages) of at least $9,075 during any such
quarter. This bill adjusts weekly benefit rates for weeks of unemployment beginning
on or after January 5, 2014, to rates ranging from $54 for an employee who earns
wages (or certain other amounts treated as wages) of at least $1,350 during at least
one quarter of the employee's base period to $370 for an employee who earns wages
(or certain other amounts treated as wages) of at least $9,250 during any such
quarter. The bill does not affect the benefit rate of any employee who earns wages
(or certain other amounts treated as wages) of at least $1,350 during at least one
quarter of the employee's base period or any employee who earns wages (or certain

other amounts treated as wages) of at least $9,075 during at least one quarter of the
employee's base period.
Other benefit changes
Registration and search for work
Currently, with limited exceptions, in order to become and remain eligible to
receive UI benefits for any week, a claimant is required, among other things, to
register for work and to conduct a reasonable search for suitable work within that
week, which must include at least two actions that constitute a reasonable search as
prescribed by rule by the Department of Workforce Development (DWD).
This bill requires a claimant, subject to the same exceptions, to provide
information or job application materials and to participate in a public employment
office workshop or training program or in similar reemployment services that do not
require a participation fee, if either is required by DWD for a given week other than
the claimant's first week of benefits. The bill allows DWD to use the information or
job application materials provided by a claimant to assess the claimant's efforts,
skills, and ability to find or obtain work and to develop a list of potential
opportunities for a claimant to obtain suitable work. However, the bill provides that
a claimant who is subject to the work search requirement need not apply for a specific
position on that list in order to satisfy that requirement.
Prohibiting concurrent receipt of UI and SSDI benefits
The bill disqualifies a claimant from receiving UI benefits during any week in
which the claimant is actually receiving social security disability insurance (SSDI)
benefits and requires a claimant, when the claimant first files for UI benefits and
during each subsequent week the claimant files for UI benefits, to inform DWD
whether he or she is receiving SSDI benefits.
Failure to accept suitable work or recall to former employer
Currently, with certain exceptions, if an employee fails, without good cause, to
accept suitable work when offered or to return to work with a former employer that
recalls the employee within 52 weeks after the employee last worked for the
employer, the employee is ineligible to receive benefits until four weeks have elapsed
since the end of the week in which the failure occurs and the employee earns wages,
or certain other amounts treated as wages, equal to at least four times the employee's
weekly benefit rate in employment covered by the unemployment insurance law of
any state or the federal government.
Subject to all of the same exceptions and qualifications, the bill changes the
amount of wages an employee must earn to requalify under these provisions to at
least six times the employee's weekly benefit rate. The bill eliminates the
requirement that, in order to requalify under these provisions, four weeks must have
elapsed since the end of the week in which the failure occurs.
Extended training benefits
Currently, benefits may not be denied to an otherwise eligible claimant because
the claimant is enrolled in a vocational training course or a basic education course
that is a prerequisite to such training ("approved training") under certain conditions.
Currently, a claimant may also qualify to receive benefits while participating in an

extended training program under certain conditions, under such a program, if a
claimant 1) has exhausted all other rights to benefits, 2) is currently enrolled in an
approved training program and was so enrolled prior to the end of the claimant's
benefit year (period during which benefits are payable) that qualified the claimant
for benefits, 3) if not in a current benefit year, has a benefit year that ended no earlier
than 52 weeks prior to the week for which the claimant first claims extended training
benefits, and 4) is not receiving any similar stipends or other training allowances for
nontraining costs, is entitled to extended training benefits of up to 26 times the same
benefit rate that applied to the claimant during his or her most recent benefit year
if the claimant is being trained for entry into a high-demand occupation. In addition,
if the benefit year of such a claimant expires in a week in which extended or other
additional federal or state benefits are payable generally, the claimant is also eligible
for extended training benefits while enrolled in a training program if the claimant
first enrolled in the program within 52 weeks after the end of the claimant's benefit
year that qualified the claimant for benefits. This bill deletes extended training
benefits.
Treatment of cafeteria plan amounts in benefit calculations
Currently, employers must report wages to DWD and these reports are used to
determine the UI benefit eligibility and amounts of benefits payable to UI claimants.
The wages reported do not include salary reduction amounts withheld from
employees for cafeteria plan benefits (fringe benefits the value of which is excluded
from gross income under the federal Internal Revenue Code). However, these
amounts are included in the formula that is used to determine the benefit eligibility
and amounts payable to claimants. DWD may require employers to report the
amounts in their wage reports and employers must maintain records of these
amounts.
This bill excludes salary reduction amounts for cafeteria plan benefits in
calculating the wages that were paid to a claimant for purposes of determining the
claimant's benefit eligibility and amounts. The bill also deletes reporting and
record-keeping requirements for these amounts. The effect is to raise the threshold
for benefit eligibility and to potentially decrease the amount of benefits that may
become payable to certain claimants whose wages include deductions for these
amounts.
Failure of claimants to provide requested information
Currently, DWD may require a claimant to answer questions relating to his or
her UI benefit eligibility and to provide certain demographic information for
auditing purposes. In addition, DWD must require each claimant to provide his or
her social security number. A claimant is not eligible to receive benefits for any week
in which the claimant fails to comply with a request by DWD for information and for
any subsequent week until the claimant provides the requested information or
satisfies that DWD that he or she had good cause for failure to provide the
information. Generally, if a claimant later complies with a request or satisfies DWD
that he or she had good cause for failure to comply, the claimant is eligible to receive
benefits beginning with the week in which the failure occurred, if otherwise
qualified. With respect to certain specific information, however, if a claimant later

provides the requested information but does not have good cause for the initial
failure to provide the information, the claimant is eligible only to receive benefits
that become payable in the week in which the information is provided. Under this
bill, if a claimant later complies with a request, the claimant is eligible to receive
benefits beginning with the week in which the failure occurred, regardless of
whether the claimant satisfies DWD that he or she had good cause for failure to
comply with the request. The change does not apply to a claimant's failure to provide
DWD his or her social security number.
Treatment of services performed by prison inmates
Under current law, covered employment under the UI law generally does not
include services by inmates of a custodial or penal institution for government units,
Indian tribes, or nonprofit organizations. The bill provides that services performed
for employers that are not government units, Indian tribes, or nonprofit
organizations by inmates of state or federal prisons are also not covered employment
under the UI law. As a consequence, wages paid by employers for those services are
not subject to UI contribution requirements and those wages are not counted as base
period wages for purposes of determining eligibility for UI benefits.
Claimant security credentials
This bill requires each claimant for UI benefits to create security credentials in
order to engage in any transactions with DWD, including the filing of an initial or
continued claim for benefits. The credentials may consist of a personal identification
number, username, and password, or any other means prescribed by DWD. The bill
provides that if a claimant's security credentials are used in any transaction with
DWD, the individual using the credentials is presumed to be the claimant or the
claimant's authorized agent. The presumption may be rebutted by a preponderance
of evidence showing that the claimant who created the credentials or the claimant's
authorized agent was not the person who used the credentials in a given transaction.
The bill provides that if a claimant uses an agent to engage in any transaction with
DWD using the claimant's security credentials, the claimant is responsible for the
actions of the agent. The bill also provides that if a claimant who creates security
credentials or the claimant's authorized agent divulges the credentials to another
person, or fails to take adequate measures to protect the credentials from being
divulged to an unauthorized person, and DWD pays benefits to an unauthorized
person because of the claimant's action or inaction, DWD may recover from the
claimant the benefits that were paid to the unauthorized person. In addition, the bill
provides that if a claimant who creates security credentials or the claimant's
authorized agent divulges the credentials to another person, or fails to take adequate
measures to protect the credentials from being divulged to an unauthorized person,
DWD is not obligated to pursue recovery of, and is not liable to the claimant for,
benefits payable to the claimant that were erroneously paid to another person.
Current law contains no similar provisions.
Benefits paid to employees who lose licenses required to perform work
Currently, if an employee is required by law to have a license issued by a
governmental agency to perform his or her customary work for an employer, and the
employee's employment is suspended or terminated because the license is

suspended, revoked, or not renewed due to the employee's fault, the employee is not
eligible to receive benefits until five weeks have elapsed since the end of the week in
which the suspension or termination occurs or until the license is reinstated or
renewed, whichever occurs first. The wages paid by the employer who suspended or
terminated the employee are excluded in determining the eligibility of and amount
of benefits payable to the employee while the license suspension, revocation, or
nonrenewal is in effect. If benefits are paid to an employee using wages that were
paid or treated as having been paid during a period when the employee's license was
suspended, revoked, or not renewed, the base period wages paid or treated as having
been paid by the employer that suspended or terminated the employee are not
charged to the employer's account for the period when the license suspension,
revocation, or nonrenewal is in effect, but are instead charged to the balancing
account of the unemployment reserve fund (pooled account financed by all employers
who pay contributions that is used to pay benefits that are not chargeable to any
employer's account). This bill provides that if an employee qualifies to receive
benefits for any benefit year using base period wages paid or treated as having been
paid during a period when wages are excluded from the employee's base period due
to a license suspension, revocation, or nonrenewal, DWD must charge the cost of the
benefits otherwise chargeable to the employer who suspended or terminated the
employee to the balancing account for all weeks in that benefit year.
Tax changes
Interest on delinquent payments
Currently, if an employer does not make a payment required under the UI law
to DWD by the due date, the employer must pay interest on the amount owed equal
to a variable rate determined by law from the date that the payment became due.
Revenues from interest payments are used to administer the UI program. This bill
permits DWD to waive or decrease the interest charged to an employer in limited
circumstances as prescribed by rule of DWD.
Treatment of limited liability companies consisting of the same members
Currently, for purposes of the UI law, multiple limited liability companies
(LLCs) that consist of the same members are treated as a single employer unless,
subject to certain provisions, each of those LLCs files a written request with DWD
to be treated as a separate employer and DWD approves the request. Under the bill,
consistent with the Federal Unemployment Tax Act (FUTA), multiple LLCs that
consist of the same members are always treated as separate employers, for purposes
of the UI law.
Other changes
License revocations based on UI contribution delinquencies
Current law requires various state agencies and boards (licensing
departments) that issue various licenses and other credentials (licenses) to revoke
a license or deny an application for a license if the Department of Revenue (DOR)
certifies that the license holder or applicant owes DOR delinquent taxes. Current
law also allows the Wisconsin Supreme Court to decide whether to revoke or deny
an application for a license to practice law if the license holder or applicant is certified

by DOR to owe delinquent taxes. This bill creates similar provisions for license
holders and applicants that DWD certifies are liable for delinquent UI contributions.
UI contributions are taxes employers must pay to DWD for deposit with the federal
government, and which are then used to pay the claims of claimants for UI benefits.
The bill also includes within the definition of UI contributions other assessments,
interest, fees, and penalties that have been imposed upon employers in connection
with their UI contribution obligations. The provisions created in the bill apply only
to delinquent UI contributions for which the employer has exhausted all legal rights
to challenge the employer's liability.
Under the bill, each licensing department must enter into a memorandum of
understanding with DWD. Under the memorandum, the licensing department must
ask DWD to certify whether a license holder or applicant is liable for delinquent UI
contributions. If DWD certifies to a licensing department that a license holder or
applicant is liable for delinquent UI contributions, the licensing department must
revoke the license or deny the application for a license. A licensing department must
mail a notice of revocation or denial to the license holder or applicant, and the notice
must inform the applicant or license holder of the right to a review of DWD's
certification at a hearing conducted by DWD. The hearing is limited to questions of
mistaken identity and prior payment of the delinquent UI contributions. Following
the hearing, if DWD does not uphold its certification, DWD must issue the holder or
applicant a nondelinquency certificate and the licensing department must reinstate
the license or approve the application for a license without requiring any additional
application, fee, or test, unless there are other grounds for denial or revocation. If
DWD does uphold its certification, DWD must so inform the license holder or
applicant and the licensing department. The license holder or applicant may seek
judicial review of an adverse determination by DWD at the hearing by filing a
petition for review in the Dane County circuit court and may appeal the court's
decision. A license holder or applicant whose license has been revoked or denied
because of delinquent UI contributions may also, after satisfying that debt, request
DWD to issue a nondelinquency certificate, which the license holder or applicant
may then present to have the license reinstated, unless there are other grounds for
not reinstating the license or for denying the application.
The bill includes the following within the definition of licensing department:
the Department of Administration; the Board of Commissioners of Public Lands; the
Department of Children and Families; the Government Accountability Board; the
Department of Financial Institutions; the Department of Health Services; the
Department of Natural Resources; the Department of Public Instruction; the
Department of Revenue; the Department of Safety and Professional Services; the
Office of the Commissioner of Insurance; and the Department of Transportation. The
bill applies to various licenses administered by the aforementioned licensing
departments.
The bill allows DWD to deny an application for or revoke various licenses
administered by DWD if the license holder or applicant is liable for delinquent UI
contributions. Such a license holder or applicant has the same rights to review by

DWD and to judicial review as do holders of or applicants for licenses administered
by other licensing departments.
The bill also requests the Wisconsin Supreme Court to enter into a similar
memorandum of understanding with DWD. If DWD determines that a licensed
attorney or an applicant for a license to practice law is liable for delinquent UI
contributions, DWD may send the attorney or applicant a notice of that
determination. The attorney or applicant has the same rights to a hearing and
judicial review as do other license holders or applicants. However, DWD may not
send the supreme court a certification of UI contribution delinquency until the
attorney or applicant has exercised or exhausted his or her full rights to judicial
review. If the determination is upheld following the holder or applicant's exercise or
exhaustion of rights to judicial review, DWD may then certify to the supreme court
that the attorney or applicant is liable for delinquent UI contributions. The supreme
court may then decide whether to suspend, revoke, or deny the attorney's or
applicant's license to practice law.
Financial record matching program
Currently, the Departments of Children and Families, Revenue, and Health
Services (departments) operate financial records matching programs whereby the
departments, for various asset verification or determination purposes, match data
possessed by the departments with the records of financial institutions. This bill
establishes a similar financial records matching program with DWD to allow DWD
to identify the assets of persons who are delinquent in paying debts related to the UI
program (UI debtors).
Under the program, financial institutions doing business in this state must
enter into agreements with DWD to participate in a financial institution matching
option or a state matching option. DWD may pay such a financial institution up to
$125 per calendar quarter for participating.
Under the financial institution matching option, at least once every calendar
quarter DWD sends information to the financial institution, including names,
addresses, and social security numbers, about UI debtors. The financial institution
determines whether any UI debtor has an ownership interest in an account at the
financial institution and, if so, sends DWD information about the account, such as
the type, number, and balance.
Under the state matching option, at least once every calendar quarter the
financial institution sends DWD information about accounts maintained at the
financial institution, including the name and social security number of each person
having an ownership interest in each account. On the basis of that information,
DWD determines whether any UI debtor has an ownership interest in an account at
the financial institution and, if so, may request further information from the
financial institution, including the person's address of record and the account
balance.
The bill prohibits DWD from disclosing or retaining information concerning
account holders who are not UI debtors; prohibits employees, agents, officers, and
directors of financial institutions from disclosing or retaining information
concerning UI debtors; and prohibits both DWD and financial institutions from

using any information received under the program for any purpose not related to the
program. The bill provides penalties for any employee, agent, officer, or director of
a financial institution who violates any of the prohibitions. The bill also provides
that a financial institution is not liable for disclosing financial information, or for
taking any other action, in compliance with the program.
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