LRB-4287/1
PJK:wlj:jm
2013 - 2014 LEGISLATURE
April 1, 2014 - Introduced by Representative Riemer. Referred to Committee on
Jobs, Economy and Mining.
AB905,1,5
1An Act to amend 49.155 (1m) (a) 3r. and 49.175 (1) (k);
to repeal and recreate
249.163; and
to create 13.94 (1) (r), 13.94 (1s) (c) 9., 20.437 (2) (em) and 20.437
3(2) (g) of the statutes;
relating to: the Transform Milwaukee Jobs program and
4the Transitional Jobs program, granting rule-making authority, and making
5appropriations.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Children and Families (DCF) is required
to establish a Transform Milwaukee Jobs program (program) in Milwaukee County
and, to the extent that funding is available, may establish a Transitional Jobs
program (program) outside of Milwaukee County in one or more geographic areas in
the state with relatively high rates of unemployment and childhood poverty. Under
either program, DCF pays an employer, or a person with which DCF contracts to
administer the program (contractor), that employs a program participant a wage
subsidy that is equal to the wage the employer or contractor pays the participant, up
to 40 hours per week at minimum wage. The employer or contractor must employ
the participant at least 20 hours per week at a location in this state and pay at least
minimum wage, although the employer, or contractor with the approval of DCF, may
pay the participant more than the wage subsidy. An individual may participate in
a program for a maximum of 1,040 hours, which is equivalent to 26 40-hour weeks.
In addition to paying the wage subsidy, DCF may reimburse an employer or
contractor for certain taxes, unemployment insurance contributions or taxes, and
worker's compensation insurance premiums that are attributable to employment of
the participant.
To be eligible to participate in a program, an individual must be at least 18 years
old, and, if over 24 years old, must be the parent or primary relative caregiver of a
child under the age of 18. The individual must have household income below 150
percent of the poverty line, be unemployed for at least four weeks, be ineligible to
receive unemployment insurance benefits, and not be participating in a Wisconsin
Works (W-2) employment position. A program participant may be eligible for a child
care subsidy under Wisconsin Shares, which generally provides child care subsidies
for participants in W-2, if the program participant needs child care services in order
to participate in the program.
DCF may administer a program or contract with any person, including a W-2
agency, county department, local workforce development board, or community action
agency, to perform administrative functions, including determining eligibility,
providing or identifying employers to provide jobs for eligible individuals, providing
job orientation and employment services, and maintaining participant demographic,
eligibility, and employment records. DCF may recover an overpayment from a
participant that results from a misrepresentation about his or her eligibility, and
must recover an overpayment from a contractor that results from a failure to comply
with the contract or to meet performance standards established by DCF.
This bill replaces the Transform Milwaukee Jobs program and the Transitional
Jobs program (former programs) with one statewide program called the Transitional
Jobs program (TJP), established for the purposes of helping unemployed and
underemployed persons gain, through wage-paying employment, the skills needed
to move into unsubsidized employment and assisting employers to create new jobs.
To be eligible for TJP, an individual must be a state resident who is at least 18 years
old, must have an annual household income below 200 percent of poverty, and must
have been unemployed or employed for fewer than 30 hours per week, or any
combination of those, for at least four consecutive weeks. In addition, the individual
must sign an agreement to reimburse DCF for the amounts that DCF pays under the
program to reimburse employers for costs attributable to the individual, except for
any amounts that are paid for time the individual works at a job under TJP while the
individual is also participating in a trial employment match program job under W-2.
DCF administers TJP and must promulgate rules for its operation, annually
submit a report on its operation to the legislature and the governor, and conduct
periodic evaluations of its effectiveness. In addition, DCF is required to contract with
a person (contractor), which may include a W-2 agency, county department, local
workforce development board, or community action agency, to perform
administrative functions in each county, including determining eligibility, providing
or identifying employers to provide jobs for eligible individuals, providing job
orientation and employment services, and maintaining participant demographic,
eligibility, and employment records.
Under TJP, if an eligible individual requests a transitional job (TJ) from the
contractor in the county in which the individual resides, the individual must be
offered a TJ if DCF has provided sufficient funding for the administration of TJP in
that county. DCF must establish a waiting list if demand for jobs exceeds the funding
available. While there is no limit on how long an individual may participate in TJP,
an individual may work in any one TJ for a maximum of 1,040 hours actually worked.
An individual with a TJ must work at least eight hours per week but not more than
40 hours per week in the TJ, must wait at least four weeks between TJs, and, unless
he or she has other employment in the regular labor market for at least 20 hours per
week, must seek permanent employment in the regular labor market while working
in a TJ and between TJs. As under the former programs, a TJP participant may be
eligible for a child care subsidy under Wisconsin Shares if he or she needs child care
services in order to participate in TJP.
Under TJP, an employer or contractor that employs a TJP participant must pay
the participant for hours actually worked at not less than the federal or state
minimum wage, whichever is higher. DCF must pay an employer or contractor that
employs a TJP participant a subsidy that is equal to the federal or state minimum
wage, whichever is higher, for each hour of work actually performed by the individual
and for which the employer or contractor has paid the individual a wage, although
the employer, or contractor with the approval of DCF, may pay the individual more
than the wage subsidy. DCF must also pay the employer or contractor for costs
incurred by the employer or contractor that are attributable to the employment of the
individual for certain taxes, unemployment insurance contributions or taxes, and
worker's compensation insurance premiums.
As under the former programs, DCF may recover an overpayment from a TJP
participant resulting from a misrepresentation about eligibility and must recover an
overpayment from a contractor resulting from a failure to comply with the contract
or to meet performance standards. The bill requires the Legislative Audit Bureau
periodically to perform both financial and performance evaluation audits of TJP. The
bill appropriates $50,000,000 of general purpose revenue in fiscal year 2015-16 and
$100,000,000 of general purpose revenue in fiscal year 2016-17 for TJP.
For further information see the state 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:
AB905,1
1Section
1. 13.94 (1) (r) of the statutes is created to read:
AB905,3,42
13.94
(1) (r) Periodically, perform financial audits and performance evaluation
3audits of the Transitional Jobs program under s. 49.163 and file copies of the reports
4of the audits with the distributees specified in par. (b).
AB905,2
5Section
2. 13.94 (1s) (c) 9. of the statutes is created to read:
AB905,4,2
113.94
(1s) (c) 9. The department of children and families for the cost of the
2audits under sub. (1) (r).
AB905,3
3Section
3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
4the following amounts for the purposes indicated:
-
See PDF for table ![PDF](http://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB905,4
5Section
4. 20.437 (2) (em) of the statutes is created to read:
AB905,4,76
20.437
(2) (em)
Transitional Jobs program. The amounts in the schedule for
7the Transitional Jobs program under s. 49.163.
AB905,5
8Section
5. 20.437 (2) (g) of the statutes is created to read:
AB905,4,109
20.437
(2) (g)
Transitional job reimbursements. All moneys received under s.
1049.163 (6) (b) 2., for the Transitional Jobs program under s. 49.163.
AB905,4,1413
49.155
(1m) (a) 3r. Participate in the
Transform Milwaukee Jobs program, or
14the Transitional Jobs program
, under s. 49.163.
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1749.163 Transitional Jobs program. (1) Definitions. In this section:
AB905,4,1918
(a) "Employer" means a person in this state who is required to file a quarterly
19federal tax return under section
3121 of the Internal Revenue Code (
26 USC 3121).
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(b) "Program" means the Transitional Jobs program under this section.
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1(c) "Transitional job" means a job under the program.
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(d) "Wisconsin Works" has the meaning given in s. 49.141 (1) (p).
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(e) "Wisconsin Works employment position" has the meaning given in s. 49.141
4(1) (r).
AB905,5,9
5(2) Establishment of program. The department shall establish the
6Transitional Jobs program to help unemployed and underemployed Wisconsin
7residents gain, through wage-paying employment, the skills needed to move as
8quickly as possible into unsubsidized employment and to assist employers in
9Wisconsin in creating new jobs.
AB905,5,11
10(3) Eligibility for program. To be eligible to participate in the program, an
11individual must satisfy all of the following criteria:
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(a) Be a Wisconsin resident who is at least 18 years of age.
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(b) Have an annual household income that is below 200 percent of the poverty
14line.
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(c) Be unemployed or employed for fewer than 30 hours per week, or a
16combination of those, for at least 4 consecutive weeks.
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(d) Except for an individual specified in sub. (6) (a) 2., sign a reimbursement
18agreement under sub. (6) (a) 1.
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19(4) Program description. The program shall include all of the following
20features and requirements:
AB905,6,521
(a) An individual who requests a transitional job from the person with which
22the department has contracted under sub. (5) (b) to administer the program in the
23county in which the individual resides and who satisfies the eligibility criteria under
24sub. (3) shall be offered a transitional job under the terms and conditions specified
25in this subsection, if the department has provided sufficient funding to the person
1administering the program in the county in which the individual resides. To the
2extent that requests for transitional jobs by eligible individuals exceed the funding
3available for the jobs, the department shall establish a waiting list based on an
4individual's length of unemployment or underemployment and other factors related
5to an individual's need for work.
AB905,6,106
(b) An individual may work in a transitional job for a maximum of 1,040 hours
7actually worked and may work in additional transitional jobs as long as he or she
8continues to satisfy the eligibility criteria under sub. (3). After working in a
9transitional job, however, an individual is ineligible to work in another transitional
10job for at least 4 weeks.
AB905,6,1511
(c) While an individual is employed in a transitional job and during any period
12of ineligibility between transitional jobs required under par. (b), unless the
13individual has other employment in the regular labor market for at least 20 hours
14per week, the individual is required to seek permanent employment, as defined by
15the department, in the regular labor market.
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(d) 1. Except as provided in subd. 2., an individual who obtains a transitional
17job must work at that job at least 8 hours per week but may not work at that job more
18than 40 hours per week.
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2. An individual working in a transitional job who has other employment in the
20regular labor market may not work at the transitional job more hours than would
21make his or her total work hours at the transitional job and the other employment
22more than 40 hours per week.
AB905,7,223
(e) The department shall determine and specify in a contract whether a
24contractor under sub. (5) (b) or an employer is the individual's employer of record.
25The employer of record shall pay the individual for hours actually worked at not less
1than the federal or state minimum wage, whichever is higher, that applies to the
2individual.
AB905,7,93
(f) The department shall pay an employer, or a contractor under sub. (5) (b),
4that employs an individual in a transitional job at a location in this state a subsidy
5equal to the federal minimum wage or the state minimum wage, whichever is higher,
6for each hour of work actually performed by the individual and for which the
7employer or contractor has paid the individual a wage, as well as amounts for all of
8the following costs actually incurred by the employer or contractor that are
9attributable to the employment of the individual in the transitional job:
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1. Federal social security and Medicare taxes.
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2. State and federal unemployment insurance contributions or taxes, if any.
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3. Worker's compensation insurance premiums, if any.
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(g) An employer, or, subject to the approval of the department, a contractor
14under sub. (5) (b), that employs an individual participating in the program may pay
15the individual an amount that exceeds any wage subsidy paid to the employer or
16contractor by the department under par. (f).
AB905,7,1817
(h) The employment of an individual under this section may not do any of the
18following:
AB905,7,2119
1. Have the effect of filling a vacancy created by an employer terminating a
20regular employee or otherwise reducing its work force for the purpose of hiring an
21individual under this section.
AB905,7,2322
2. Fill a position when any other person is on layoff or strike from the same or
23a substantially equivalent job within the same organizational unit.
AB905,7,2524
3. Fill a position when any other person is engaged in a labor dispute regarding
25the same or a substantially equivalent job within the same organizational unit.
AB905,8,3
1(5) Administration. (a) The department shall administer the program. In
2addition to any other duties specified in this section, the department shall do all of
3the following:
AB905,8,44
1. Promulgate any rules necessary for the operation of the program.
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2. Cooperate with the legislative audit bureau in the performance of the audits
6under s. 13.94 (1) (r).
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3. Annually, submit a report on the operation of the program to the legislature
8under s. 13.172 (2) and to the governor.
AB905,8,149
4. Conduct, or enter into arrangements with independent academic or research
10organizations to conduct, periodic evaluations of the effectiveness of the program in
11reducing poverty and unemployment; helping unemployed and underemployed
12Wisconsin residents gain, through wage-paying employment, the skills needed to
13move as quickly as possible into unsubsidized employment; and assisting employers
14in Wisconsin in creating new jobs.
AB905,8,2015
(b) The department shall contract with a person, which may include a
16Wisconsin Works agency; county department under s. 46.215, 46.22, or 46.23; local
17workforce development board established under
29 USC 2832; or community action
18agency under s. 49.265, in each county to administer the program in that county. The
19department, or the person or persons with which the department contracts under
20this subsection, shall do all of the following:
AB905,8,2121
1. Determine the eligibility of applicants for the program.
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2. Provide, or identify employers to provide, jobs for individuals transitioning
23to unsubsidized employment from unemployment, underemployment, limited work
24history, foster care, or other circumstances identified by the department.
AB905,8,2525
3. Conduct job orientation activities.
AB905,9,2
14. Provide employment services, as specified by the department, for program
2participants.
AB905,9,43
5. Maintain and update participant demographic, eligibility, and employment
4records in the manner required by the department.
AB905,9,8
5(6) Reimbursements. (a) 1. To participate in the program, an individual must
6agree, in writing, to reimburse the department for all amounts that the department
7pays to an employer or contractor under sub. (4) (f) that are attributable to the
8employment of the individual under the program.
AB905,9,149
2. Notwithstanding subd. 1., an individual is not required to sign a
10reimbursement agreement or to reimburse the department for amounts paid under
11sub. (4) (f) on behalf of the individual for time worked in a transitional job while the
12individual is also participating in a trial employment match program job under s.
1349.147 (3), including an individual placed in a trial employment match program job
14under s. 49.159 (1) (b) 2.
AB905,9,1815
(b) 1. The department shall promulgate rules establishing the terms and
16conditions of reimbursement. The rules shall provide for reimbursement by
17performance of in-kind services and shall set out the criteria for approving in-kind
18reimbursement.
AB905,9,2019
2. The department shall credit all reimbursements paid under this subsection
20to the appropriation account under s. 20.437 (2) (g).
AB905,9,24
21(7) Recovery of overpayments. (a) The department may recover from any
22individual participating, or who has participated, in the program any overpayment
23resulting from a misrepresentation by the individual as to any criterion for eligibility
24under sub. (3).