SB676: Bill Text

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 Section 1. 5.02 (6m) (f) of the statutes is amended to read:

SB676,9,7 5.02 (6m) (f) An unexpired identification card issued by a university or college in this state that is accredited, as defined in s. 39.30 (1) (d), 2011 stats., that contains the date of issuance and signature of the individual to whom it is issued and that contains an expiration date indicating that the card expires no later than 2 years after the date of issuance if the individual establishes that he or she is enrolled as a student at the university or college on the date that the card is presented.

SB676,2 Section 2. 16.27 (2) (a) of the statutes is amended to read:

SB676,9,15 16.27 (2) (a) The department shall administer low-income energy assistance as provided in this section to assist an eligible household to meet the costs of home energy with low-income home energy assistance benefits authorized under 42 USC 8621 to 8629. Neither the department nor any county department, local government agency, or private nonprofit organization with which the department contracts to administer assistance under this section may notify a household that the household is eligible for assistance under this section more than 2 times in a 12-month period.

SB676,3 Section 3. 16.27 (5) (intro.) of the statutes is amended to read:

SB676,9,19 16.27 (5) Eligibility. (intro.) Subject to the requirements of subs. (4) (b) and (8), and except as provided in sub. (5m), the following shall receive low-income energy assistance under this section:

SB676,4 Section 4. 16.27 (5) (b) of the statutes is amended to read:

SB676,10,5 16.27 (5) (b) A household with income which is not more than 60 percent of the statewide median household income. The income for a household that includes a married couple is reduced by $10,000 before the determination of eligibility is made under this paragraph.

SB676,5 Section 5. 16.27 (5m) of the statutes is created to read:

SB676,10,10 16.27 (5m) Limitations on eligibility. (a) 1. Except as provided in subd. 2., a household with assets that exceed $2,000 in combined equity value or with a vehicle having an equity value of $10,000 or greater is not eligible for low-income energy assistance under this section.

SB676,10,12 2. Subdivision 1. does not apply if any individual member of the household is disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.

SB676,10,20 (b) If the department determines it may not implement the limitation under par. (a) 1. without a waiver from the federal department of health and human services and that such a waiver may be requested under federal law, the department shall request a waiver from the secretary of the federal department of health and human services. If a waiver that is consistent with par. (a) 1. is granted and in effect, the department shall implement the limitation on eligibility under par. (a) 1. If a waiver is required, the department may not implement the limitation on eligibility under par. (a) 1. unless a waiver is granted and in effect.

SB676,6 Section 6. 16.3025 of the statutes is created to read:

SB676,11,2 16.3025 State housing programs; limitations. (1) Except as provided in sub. (2), the department shall ensure that all of the following requirements are satisfied in connection with housing, housing costs, utility-related costs, grants, or loans provided, directly or indirectly, under ss. 16.301 to 16.315 by the department or by a community-based organization, housing authority, or designated agent under s. 16.304 to persons and families of low and moderate income:

SB676,11,8 (a) Any housing provided to 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. To satisfy the requirements of this paragraph, the department may require that more than 2 unrelated persons or families of low or moderate income be housed in one housing unit.

SB676,11,13 (b) A person or family with assets that exceed $2,000 in combined equity value or with a vehicle having an equity value of $10,000 or greater is not eligible for assistance with housing, housing costs, or utility-related costs under this subchapter or eligible to benefit from any grants or loans made under this subchapter.

SB676,11,17 (c) For purposes of determining eligibility for any assistance under this subchapter, an applicant's income includes the income of any person who spent at least 15 nights in the applicant's home during the 60-day period immediately before the date of the application.

SB676,11,20 (2) The requirements in sub. (1) (a) to (c) do not apply to a person who is, or a family that includes, a person who is disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.

SB676,12,3 (3) If the department determines it may not implement the limitations on eligibility and housing under sub. (1) without a waiver from the federal department of housing and urban development and that such a waiver may be requested under federal law, the department shall request a waiver. If a waiver that is consistent with sub. (1) is granted and in effect, the department shall implement the limitations on eligibility and housing under sub. (1). The department may not implement any limitation under sub. (1) for which a waiver is required unless a waiver as to that limitation is granted and in effect.

SB676,7 Section 7. 16.303 (1) (a) of the statutes is amended to read:

SB676,12,8 16.303 (1) (a) Subject to sub. (2) and the limitations on eligibility and housing under s. 16.3025, make grants or loans, directly or through agents designated under s. 16.304, from the appropriation under s. 20.505 (7) (b) to persons or families of low or moderate income to defray housing costs of the person or family.

SB676,8 Section 8. 16.305 (2) (d) of the statutes is created to read:

SB676,12,12 16.305 (2) (d) The department determines that the grant is consistent with and will not be used in violation of the limitations on eligibility and housing under s. 16.3025.

SB676,9 Section 9. 16.306 (2) (a) of the statutes is amended to read:

SB676,12,19 16.306 (2) (a) From the appropriation under s. 20.505 (7) (fm), the department may award a grant to an eligible applicant for the purpose of providing transitional housing and associated supportive services to homeless individuals and families if the conditions under par. pars. (b) and (c) are satisfied. The department shall ensure that the funds for the grants are reasonably balanced among geographic areas of the state, consistent with the quality of applications submitted.

SB676,10 Section 10. 16.306 (2) (c) of the statutes is created to read:

SB676,12,23 16.306 (2) (c) A recipient of a grant under par. (a) shall agree to comply with the limitations on eligibility and housing for persons and families of low and moderate income under s. 16.3025.

SB676,11 Section 11. 20.235 (1) (b) of the statutes is repealed.

SB676,12 Section 12. 20.235 (1) (fd) of the statutes is repealed.

SB676,13 Section 13. 20.235 (1) (fe) of the statutes, as affected by 2013 Wisconsin Act 20, is repealed.

SB676,14 Section 14. 20.235 (1) (ff) of the statutes is repealed.

SB676,15 Section 15. 20.235 (1) (fg) of the statutes is repealed.

SB676,16 Section 16. 20.235 (1) (fj) of the statutes is repealed.

SB676,17 Section 17. 20.235 (1) (gm) of the statutes is repealed.

SB676,18 Section 18. 20.235 (1) (k) of the statutes is repealed.

SB676,19 Section 19. 20.235 (1) (ke) of the statutes, as created by 2013 Wisconsin Act 20, is repealed.

SB676,20 Section 20. 20.235 (1) (km) of the statutes is repealed.

SB676,21 Section 21. 20.285 (1) (gb) of the statutes, as affected by 2013 Wisconsin Act 20, section 250h, is amended to read:

SB676,13,19 20.285 (1) (gb) General program operations. All moneys received from the operation of educational programs and related programs to carry out the purposes for which received, including the transfer of funds to par. (gj). In each fiscal year, the Board of Regents shall transfer no more than $20,338,500 from this appropriation account to the medical assistance trust fund. In fiscal year 2013-14, the amount in the schedule under s. 20.235 (1) (ke) shall be transferred from this appropriation account to the appropriation account under s. 20.235 (1) (ke).

SB676,22 Section 22. 20.505 (8) (hm) 4i. of the statutes is repealed.

SB676,23 Section 23. 20.505 (8) (hm) 10. of the statutes is repealed.

SB676,24 Section 24. 36.11 (6) (c) of the statutes is repealed.

SB676,25 Section 25. 36.11 (59) of the statutes is created to read:

SB676,14,4 36.11 (59) Scholarships based on financial need. The board may not award a scholarship that is based in whole or in part on financial need to any student under the age of 22 who is a dependent of his or her parents unless the board's calculation of financial need includes consideration of the income and assets of both of the student's parents. Scholarship moneys awarded by the board may be used only for tuition, fees, books, and educational supplies.

SB676,26 Section 26. 36.25 (49) of the statutes is amended to read:

SB676,14,19 36.25 (49) Academic fee increase grants. The board may make grants to resident undergraduate students who do not receive grants under s. 39.435 that are payable from the appropriation under s. 20.235 (1) (fe), whose annual family income is less than $60,000, and who have unmet financial need. Beginning in fiscal year 2011-12, the board may make a grant under this subsection only to those students enrolled in the system during fiscal year 2010-11 who maintain continuous enrollment. A grant to a student under this subsection shall be in an amount determined by the board that corresponds to any increase, or any portion of an increase, in academic fees charged to the student, but may not exceed the amount of the student's unmet need. The board may not make a grant under this subsection to a student whose name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the student provides to the board a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

SB676,27 Section 27. 38.04 (7m) of the statutes is repealed.