LRB-3902/2
PK/FK/MS/PG/GM:eev:jm
2013 - 2014 LEGISLATURE
March 13, 2014 - Introduced by Senator Grothman, cosponsored by Representative
Craig. Referred to Committee on Health and Human Services.
SB676,3,3
1An Act to repeal 20.235 (1) (b), 20.235 (1) (fd), 20.235 (1) (fe), 20.235 (1) (ff),
220.235 (1) (fg), 20.235 (1) (fj), 20.235 (1) (gm), 20.235 (1) (k), 20.235 (1) (ke),
320.235 (1) (km), 20.505 (8) (hm) 4i., 20.505 (8) (hm) 10., 36.11 (6) (c), 38.04 (7m),
439.285, 39.30, 39.31, 39.38, 39.435 and 39.44;
to renumber and amend 49.147
5(1m) (a);
to amend 5.02 (6m) (f), 16.27 (2) (a), 16.27 (5) (intro.), 16.27 (5) (b),
616.303 (1) (a), 16.306 (2) (a), 20.285 (1) (gb), 36.25 (49), 39.39 (2) (b), 39.45 (1)
7(a), 39.45 (1) (b), 49.147 (1m) (title), 49.147 (4) (am), 49.147 (4) (as), 49.147 (4)
8(av), 49.147 (5) (bm), 49.147 (5) (bs), 49.147 (5m) (a) (intro.), 49.147 (5m) (bL),
949.148 (1) (intro.), 49.148 (1) (b) 1., 49.148 (1) (b) 1m. d., 49.148 (1) (b) 3., 49.148
10(1) (c), 49.148 (1m) (a) (intro.), 49.155 (5) (a), 49.155 (6g) (a) 2., 49.155 (6g) (a)
113., 66.1201 (9) (a), 71.53 (2) (c), 118.60 (2) (a) 1. b., 119.23 (2) (a) 1. b., 234.03
12(intro.), 234.04 (1), 234.04 (2), 234.04 (3), 234.06 (1), 234.06 (3), 234.49 (2) (a)
13(intro.), 234.59 (2) (intro.), 234.592 (2) (intro.), 944.21 (8) (b) 4. and 948.11 (4)
14(b) 4.; and
to create 16.27 (5m), 16.3025, 16.305 (2) (d), 16.306 (2) (c), 36.11 (59),
139.28 (7), 49.143 (4m), 49.147 (1m) (a) 2., 49.147 (1m) (a) 3., 49.148 (2), 49.148
2(5), 49.155 (1m) (c) 4., 49.155 (6g) (a) 5., 49.79 (1m), 49.79 (7c), 49.79 (7h), 49.79
3(11), 49.823, 49.97, 66.1204, 71.07 (9e) (h), 71.53 (2) (g), 115.34 (3) and 234.038
4of the statutes;
relating to: education and training under Wisconsin Works;
5reducing Wisconsin Works benefits; a minimum copayment, maximum child
6care hours, and reducing income based on marriage for eligibility under
7Wisconsin Shares; changes to the food stamp program relating to financial
8eligibility for benefits, allowing an election to reduce benefits, recouping
9unused benefits, and prohibiting supplier discounts; prohibiting advertising
10concerning means-tested public assistance on radio or television; requiring
11consideration of the income and assets of all individuals in a household for
12purposes of eligibility for any means-tested public assistance; eligibility
13requirements for persons or families of low and moderate income to receive
14certain housing, housing assistance, grants, loans, or benefits from the
15Wisconsin Housing and Economic Development Authority, the Department of
16Administration, and local housing authorities; reducing the authority of local
17housing authorities; eligibility requirement for purposes of receiving
18low-income energy assistance; prohibiting new claims under the earned
19income tax credit; limiting eligibility for the homestead tax credit; elimination
20of certain grant programs administered by the Higher Educational Aids Board
21and transfer of the unencumbered balances in the appropriations for those
22programs to the University of Wisconsin System for the purpose of tuition
23reduction; consideration of the income and assets of both parents of a student
24under 22 years of age for purposes of awarding a grant or scholarship to such
25a student and the permissible uses of grant or scholarship moneys awarded;
1income eligibility requirements for enrollment in a private school participating
2in a parental choice program; the school lunch program; and granting
3rule-making authority.
Analysis by the Legislative Reference Bureau
Wisconsin Works and Wisconsin Shares
The Wisconsin Works (W-2) program under current law provides monthly
grants and work experience, in the form of trial employment match program jobs,
community service jobs, and transitional placements, for low-income custodial
parents who are at least 18 years old; monthly grants for custodial parents of infants
who are eight weeks old or younger and for unmarried, pregnant women who are
unable to participate in the workforce because they are in the third trimester of
at-risk pregnancies; job search assistance to noncustodial parents who are required
to pay child support, to minor custodial parents, and to pregnant women who are not
custodial parents; as well as child care subsidies under a program known as
Wisconsin Shares, under which an individual who is the parent of a child under the
age of 13 or, if the child is disabled, under the age of 19, and who satisfies other
eligibility criteria may receive a child care subsidy for child care services that the
individual needs to participate in various educational or work activities. W-2 is
administered, generally, by W-2 agencies under contracts with the Department of
Children and Families (DCF).
Under current law, a W-2 agency must conduct an educational needs
assessment of each individual who applies for an employment position under W-2
and, if the individual and W-2 agency determine that the individual needs or would
benefit from education or training activities and that the individual is eligible for a
W-2 employment position, the W-2 agency must include education or training
activities in the individual's employability plan. Under the bill, a W-2 agency must
conduct an education and training assessment of each individual and, if the
individual and W-2 agency determine that the individual needs or would benefit
from education or training activities to better prepare the individual for
employment, the W-2 agency determines that the individual would likely be
successful in the education or training activities, and the individual is eligible for a
W-2 employment position, the W-2 agency must include education or training
activities in the individual's employability plan. The bill sets out the specific factors
that the W-2 agency must use to determine whether the individual is likely to be
successful in the education or training activities, including whether the individual
can read and write, whether the individual can perform basic arithmetic functions,
whether the individual has stable housing, whether the individual is able to keep
appointments on time, and whether the individual has the support of his or her
family. The bill lists the specific types of education or training activities in which an
individual may participate, including employer-sponsored training, courses in
English as a second language, and technical college courses, and provides, generally,
that an individual may participate in the education or training activities for no more
than 18 total months, that DCF must specify the maximum time of classroom
instruction, and that the individual's employer, if any, must approve of the
individual's participation in the education or training activities. Under current law,
an individual in a community service job employment position may be required to
participate in education or training activities for not more than 10 hours per week
and an individual in a transitional placement employment position may be required
to participate in education or training activities for not more than 12 hours per week.
The bill reduces those maximum times to not more than eight hours per week and
not more than 10 hours per week, respectively.
Under current law, an individual in a community service job employment
position receives a monthly grant of $653, an individual in a transitional placement
employment position receives a monthly grant of $608, and a custodial parent of an
infant who is eight weeks old or younger or an unmarried, pregnant woman who is
unable to participate in the workforce because she is in the third trimester of an
at-risk pregnancy receives a monthly grant of $673. The bill reduces each of those
monthly grant amounts by $20. In addition, under the bill DCF is directed to
calculate the monthly amount or value of other public assistance benefits received
by these W-2 participants and to reduce the monthly benefit by that amount. DCF
must promulgate rules that define, for this purpose, what other public assistance
benefits are.
The bill prohibits DCF and W-2 agencies from paying a bonus to a W-2
participant on the basis of the length of time the participant remains at a job. The
bill also requires DCF to implement a case monitoring audit process to ensure that
W-2 agencies are adequately monitoring the activities of all W-2 participants.
Under current law, to be eligible for a child care subsidy under Wisconsin
Shares, the gross income of the child's family may not exceed 200 percent of the
federal poverty line (FPL). The bill requires that the gross income of the child's
family be reduced by $20,000 before the gross income as a percentage of FPL is
calculated if the child's parents are married. Current law provides that no more than
12, or in some cases up to 16, hours of subsidized child care may be authorized per
child per day. The bill imposes a limit on the amount of child care for which a subsidy
may be provided of 40 hours per week per child. Also under current law, a child care
subsidy recipient must pay the difference, if any, between the cost of the child care
and the amount of the child care subsidy. The bill specifies that a child care subsidy
recipient must pay a minimum copayment of $2 per hour per child.
FoodShare
The federal Supplemental Nutrition Assistance Program (SNAP), known in
Wisconsin as FoodShare and formerly known as the food stamp program, provides
benefits to eligible low-income households for the purchase of food. FoodShare is
administered by the Department of Health Services (DHS), and the state and the
federal government share the cost of administration. Benefits, which are
electronically debited to a Quest card, are paid entirely with federal funds. Any
benefit amount that is not used in the month of receipt is carried over and may be
used by the recipient for up to one year. Eligibility criteria for FoodShare, which is
based on federal law, is not set out in the statutes. In Wisconsin, generally, an
individual or family is eligible if gross income does not exceed 200 percent of FPL and
assets are not considered. If a household has an elderly, blind, or disabled member,
there is no limit on gross income, but net income may not exceed 100 percent of FPL,
and such a household may not have more than $3,000 in countable assets if gross
income exceeds 200 percent of FPL.
Under the bill, to be eligible for FoodShare, an individual's or family's gross
income may not exceed 130 percent of FPL and net income may not exceed 100
percent of FPL; the household may not have countable assets that exceed $2,000 in
value, except that countable assets may not exceed $3,200 in value if the household
includes an individual who is at least 60 years old, blind, or disabled. In addition,
the bill requires that the gross and net incomes of a household be reduced by $15,000
each before determining whether the gross or net income exceeds 130 or 100 percent
of FPL, respectively, if the household includes a married couple.
The bill prohibits DHS from allowing or accepting online applications for
FoodShare and prohibits retail grocery stores from giving discounts on the cost of
food or other items for using food stamp benefits to purchase the food or other items.
The bill also provides that, to the extent permitted under federal law, DHS must
implement a food stamp benefit distribution system that allows a food stamp benefit
recipient to elect to receive a benefit amount that is less than the amount for which
the recipient's household is eligible and that recoups any food stamp benefits that are
not used up in the month in which they are received.
Public assistance
The bill defines "means-tested public assistance" as services, benefits, or other
assistance that are provided to individuals or families under the public assistance
provisions of the statutes and for which income or assets is a factor in determining
eligibility. Under the bill, when determining an individual's or family's eligibility for
means-tested public assistance, DHS or DCF must take into consideration the
income or assets, whichever is applicable for the program, of every individual who
resides in the household of the individual or family that is applying for the
means-tested public assistance. DHS or DCF must request a waiver of federal law
if it appears that a waiver would be necessary for implementing this requirement for
any particular program providing means-tested public assistance. The bill also
prohibits DHS or DCF from using radio or television to advertise the availability of,
or to provide any information concerning, means-tested public assistance.
Low-income energy assistance
Under current law, the Department of Administration (DOA) administers a
program that provides low-income energy assistance to eligible households,
including households with incomes of less than 60 percent of the statewide median
household income and households composed entirely of individuals receiving Aid to
Families with Dependent Children or Supplemental Security Income. This bill
provides that for purposes of determining eligibility for low-income energy
assistance, the income of a household that includes a married couple is reduced by
$10,000. This bill also makes ineligible for low-income energy assistance a
household with assets that exceed $2,000 in cash equity value or with a vehicle
having an equity value of $10,000 or greater, unless a member of the household is
disabled or aged 62 or older. Finally, under the bill, DOA may not notify a household
of the household's eligibility for low-income energy assistance more than twice in a
12-month period.
Department of Administration low-income housing assistance
Under current law, DOA may make grants or loans, directly or through agents
designated by DOA, to persons or families of low and moderate income to defray
housing costs, including utility costs, and may make grants to community-based
organizations, organizations operated for profit, or housing authorities to improve
the ability of these entities to provide housing opportunities for persons or families
of low and moderate income.
This bill requires DOA to impose limits on eligibility and housing for families
and persons of low and moderate income seeking housing assistance directly or
indirectly through DOA, unless the person is, or the family includes, a person who
is disabled or aged 62 or older. Under the requirement, persons or families of low and
moderate income who receive assistance with housing, housing costs, utility-related
costs, or grants or loans from any project or program administered by DOA as
described above, are subject to the following limitations:
1. A person or family of low or moderate income is restricted to housing in which
the square footage is less than 50 percent of the average square footage for a rental
unit of average rental value in the county in which the person or family resides. In
order to satisfy this requirement, DOA may require that more than two unrelated
persons or families of low or moderate income be housed in one housing unit.
2. With two exceptions, persons or families of low or moderate income with
assets that exceed $2,000 in cash equity value or with a vehicle having an equity
value of $10,000 or greater may not receive housing or assistance with housing costs
or utility-related costs from DOA.
3. For purposes of determining eligibility for low-income housing assistance,
the income of any individual who is not related to the applicant and who is living in
the applicant's home at the time of the application must be included in the applicant's
income.
If DOA determines that it may not implement the limitations and prohibitions
established under the bill without a waiver of federal law from the federal
Department of Housing and Urban Development (HUD) and that a waiver of federal
law is available, DOA must apply for and obtain a waiver from HUD before it may
implement the limitations.
Wisconsin Housing and Economic Development Authority low-income
housing assistance
Under current law, the Wisconsin Housing and Economic Development
Authority (WHEDA) administers several programs that provide assistance to
persons and families of low and moderate income in obtaining housing. Eligibility
for the programs is determined under the Wisconsin statutes and under federal law,
including the Housing Choice Voucher Program administered by HUD. Funding for
these programs is provided from a number of sources, including bonds issued by
WHEDA under its statutory authority and from the federal government.
This bill requires WHEDA to impose the following limits on eligibility for
families and persons of low and moderate income seeking housing assistance directly
or indirectly through WHEDA:
1. No person may receive housing assistance from HUD through WHEDA
unless the person is disabled or aged 62 or older. The bill defines "disabled" to mean
blind as established under federal law or disabled as established under federal law.
2. Persons or families of low and moderate income who receive housing or
housing assistance directly or indirectly from WHEDA are subject to the following
limitations, unless the person is, or the family includes, a person who is disabled or
aged 62 or older:
a. A person or family of low or moderate income must be restricted to housing
in which the square footage is less than 50 percent of the average square footage for
a rental unit of average rental value in the county in which the person or family
resides. In order to satisfy this requirement, WHEDA may require that more than
two unrelated persons or families of low or moderate income be housed in one
housing unit.
b. With two exceptions, persons or families of low or moderate income with
assets that exceed $2,000 in cash equity value or with a vehicle having an equity
value of $10,000 or greater may not receive housing or housing assistance from
WHEDA.
c. For purposes of determining eligibility for housing or housing assistance
from WHEDA, the income of any individual who is not related to the applicant and
who is living in the applicant's home at the time of the application must be included
in the applicant's income.
If WHEDA determines that it may not implement the limitations and
prohibitions established under the bill without a waiver of federal law from HUD and
that a waiver of federal law is available, WHEDA must apply for and obtain a waiver
from HUD before it may implement the limitations.
Taxation
Under federal law, the earned income tax credit (EITC) is a refundable tax
credit for low-income workers. If the amount of the claim exceeds the worker's tax
liability, the claimant receives a check for the excess amount from the Internal
Revenue Service. The amount of the credit for which a claimant is eligible is based,
in part, on whether the claimant has no qualifying children, one qualifying child, or
more than one qualifying child.
Under current law, the refundable Wisconsin EITC may be claimed in an
amount equal to a certain percentage of the federal basic EITC. To be eligible for the
Wisconsin EITC, an individual must have one or more qualifying children. The
Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one
qualifying child, 11 percent of the federal credit if the claimant has two qualifying
children, and 34 percent of the federal credit if the claimant has three or more
qualifying children.
Under this bill, no new claims under the Wisconsin EITC may be filed for a
taxable year that begins after December 31, 2014.
Under current law, the homestead tax credit may be claimed by an individual
who is at least 18 years of age and who is not, in general, claimed as a dependent for
federal income tax purposes in the year to which the claim relates. Under this bill,
for claims filed for taxable years that begin after December 31, 2014, a claimant must
be at least 55 years old to claim the homestead tax credit.
Local housing authorities
Generally under current law, a local housing authority may acquire, lease, and
operate approved housing projects, and may provide for the construction,
reconstruction, improvement, alteration, or repair of any housing project. Under
this bill, after the effective date of the bill, a local housing authority may not provide
for the construction of low-income housing unless it is for individuals age 55 and
above. In addition, the bill prohibits a local housing authority from requesting more
money for low-income housing.
Parental choice program pupil eligibility
Under the parental choice programs, a pupil who is a member of a family that
has a total family income that does not exceed 3.0 times the poverty level may attend
a private school at state expense under certain conditions. When verifying a family's
income, the Department of Revenue must first deduct $7,000. This bill increases the
deduction to $30,000.
School lunch program
This bill prohibits a school board from providing to a pupil's parent or guardian
more than two notices describing eligibility criteria for the school lunch program in
any school year.
Higher education grants and scholarships
Under current law, the Higher Educational Aids Board (HEAB) awards certain
grants based on financial need. Those grants include Wisconsin higher education
grants for students enrolled in public institutions of higher education or tribal
colleges in this state (WHEG grants), tuition grants for students enrolled in private
institutions of higher education in this state (tuition grants), Indian student
assistance grants to assist Indian students who are residents of this state (Indian
student assistance grants), and minority undergraduate retention grants to assist
minority students enrolled in private institutions of higher education or technical
colleges in this state (minority undergraduate retention grants).
This bill eliminates WHEG grants, tuition grants, Indian student assistance
grants, and minority undergraduate retention grants, transfers the unencumbered
balances in the appropriations for those grants to the Board of Regents of the
University of Wisconsin (UW) System (Board of Regents), and directs the Board of
Regents to use the amount so transferred to reduce the tuition charged to enroll in
educational programs in the UW System.
The bill also prohibits HEAB from awarding any state financial assistance, and
the Board of Regents from awarding any scholarship, that is based on financial need
to a student under 22 years of age who is a dependent of his or her parents unless
the calculation of the student's financial need includes consideration of the income
and assets of both of the student's parents. In addition, the bill requires state
financial assistance awarded by HEAB and scholarship moneys awarded by the
Board of Regents to be used only for tuition, fees, books, and educational supplies.
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:
SB676,1
1Section
1. 5.02 (6m) (f) of the statutes is amended to read:
SB676,9,72
5.02
(6m) (f) An unexpired identification card issued by a university or college
3in this state that is accredited, as defined in s. 39.30 (1) (d),
2011 stats., that contains
4the date of issuance and signature of the individual to whom it is issued and that
5contains an expiration date indicating that the card expires no later than 2 years
6after the date of issuance if the individual establishes that he or she is enrolled as
7a student at the university or college on the date that the card is presented.
SB676,2
8Section
2. 16.27 (2) (a) of the statutes is amended to read:
SB676,9,159
16.27
(2) (a) The department shall administer low-income energy assistance
10as provided in this section to assist an eligible household to meet the costs of home
11energy with low-income home energy assistance benefits authorized under
42 USC
128621 to
8629.
Neither the department nor any county department, local government
13agency, or private nonprofit organization with which the department contracts to
14administer assistance under this section may notify a household that the household
15is eligible for assistance under this section more than 2 times in a 12-month period.
SB676,3
16Section
3. 16.27 (5) (intro.) of the statutes is amended to read:
SB676,9,1917
16.27
(5) Eligibility. (intro.) Subject to the requirements of subs. (4) (b) and
18(8)
, and except as provided in sub. (5m), the following shall receive low-income
19energy assistance under this section:
SB676,4
1Section
4. 16.27 (5) (b) of the statutes is amended to read:
SB676,10,52
16.27
(5) (b) A household with income which is not more than 60 percent of the
3statewide median household income.
The income for a household that includes a
4married couple is reduced by $10,000 before the determination of eligibility is made
5under this paragraph.
SB676,5
6Section
5. 16.27 (5m) of the statutes is created to read:
SB676,10,107
16.27
(5m) Limitations on eligibility. (a) 1. Except as provided in subd. 2., a
8household with assets that exceed $2,000 in combined equity value or with a vehicle
9having an equity value of $10,000 or greater is not eligible for low-income energy
10assistance under this section.
SB676,10,1211
2. Subdivision 1. does not apply if any individual member of the household is
12disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.
SB676,10,2013
(b) If the department determines it may not implement the limitation under
14par. (a) 1. without a waiver from the federal department of health and human
15services and that such a waiver may be requested under federal law, the department
16shall request a waiver from the secretary of the federal department of health and
17human services. If a waiver that is consistent with par. (a) 1. is granted and in effect,
18the department shall implement the limitation on eligibility under par. (a) 1. If a
19waiver is required, the department may not implement the limitation on eligibility
20under par. (a) 1. unless a waiver is granted and in effect.