SB399: Bill Text

LRB-4207/1

MED:ahe

2017 - 2018 LEGISLATURE

2017 Senate BILL 399

September 6, 2017 - Introduced by Senator Nass, cosponsored by Representative Kulp, by request of Department of Workfore Development. Referred to Committee on Labor and Regulatory Reform.

SB399,2,3 An Act to repeal 108.22 (8) (b) 1. b. to d., 108.22 (8) (b) 2., 108.22 (8) (b) 3. and 108.22 (8) (bh); to renumber 108.133 (1) (a); to renumber and amend 108.22 (3); to consolidate, renumber and amend 108.22 (8) (b) 1. (intro.) and a.; to amend 20.445 (1) (aL), 20.445 (1) (u), 20.445 (1) (v), 108.02 (13) (i), 108.04 (1) (hm), 108.04 (2) (bm), 108.04 (2) (g) 2., 108.04 (7) (e), 108.04 (8) (b), 108.04 (13) (c), 108.04 (13) (e), 108.04 (16) (a) 4., 108.04 (17) (e), 108.05 (3) (d), 108.05 (10) (b), 108.062 (2) (m), 108.062 (6) (a), 108.062 (10), 108.09 (4) (d) 2., 108.09 (4) (e) 2., 108.09 (9) (c), 108.095 (8), 108.10 (1), 108.10 (5), 108.133 (2) (intro.), 108.133 (2) (a) 1., 108.133 (2) (a) 2., 108.133 (2) (a) 3., 108.133 (2) (a) 4., 108.133 (2) (a) 5., 108.133 (2) (b), 108.133 (3) (a) to (e), 108.133 (4) (a), 108.15 (3) (a), 108.15 (5) (b), 108.151 (5) (f), 108.155 (4) (intro.), 108.16 (2) (e), 108.16 (2) (em), 108.19 (1m), 108.21 (2), 108.22 (1m), 108.22 (1r), 108.22 (2), 108.22 (4), 108.22 (5), 108.22 (9), 108.223 (1) (br), 108.225 (1) (b), 108.225 (4) (b) and 815.29 (1); and to create 108.04 (1) (hr), 108.133 (1) (ag), 108.133 (4) (c), 108.16 (6) (p), 108.19 (1s) (a) 5., 108.19 (1s) (a) 6., 108.22 (1t), 108.22 (2) (c), 108.22 (3) (b), 108.22 (8) (d), 108.22 (10) and 108.22 (11) of the statutes; relating to: various changes to the unemployment insurance law and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill makes various changes in the unemployment insurance law, which is administered by the Department of Workforce Development. Significant changes include all of the following:

Revisions to collections provisions

Current law provides for a number of methods that DWD may use to collect UI-related debt, such as delinquent contributions and benefit overpayments. The particular methods that are available depend on the type of debt that is owed. The bill makes a number of changes to a number of these provisions regarding the collection of UI-related debt, including all of the following:

1. The bill provides for an unrecorded lien against any person who owes DWD a debt under the UI law. Currently, such liens are only imposed against employers. The bill provides that such a lien is effective upon the earlier of the date on which the amount is first due or the date on which DWD issues a determination of the amount owed. The bill provides that any such lien is recorded when DWD issues a warrant for the debt.

2. Current law allows DWD, in certain circumstances, to hold an individual who is an officer, employee, member, manager, partner, or other responsible person holding at least 20 percent of the ownership interest of a corporation, limited liability company, or other business association personally liable for UI contributions and certain other amounts. This bill deletes the 20 percent ownership requirement.

3. The bill allows DWD to set off any amounts against state tax refund overpayments. Currently, DWD may only set claimants' benefit overpayments off against state tax refund overpayments.

4. The bill allows DWD to assess a third party who fails to surrender property that DWD attempts to collect through levy a penalty in the amount of 50 percent of the debt owed by the debtor. The bill provides for such assessments to be deposited in the unemployment program integrity fund. Current law instead provides that the third party is subject to proceedings to enforce the levy and is liable to the department for up to 25 percent of the debt.

5. Under current law, DWD may issue a warrant directed to an employee or other agent of DWD. In the execution of such a warrant, the employee or agent has all the powers conferred by law upon a sheriff. The bill allows DWD, when executing such a warrant, to conduct an execution sale of property in any county of this state and to sell the property in any manner that will bring the highest net bid or price, including an Internet-based auction or sale.

Fiscal agents; joint and several liability

Under current law, a person receiving certain support services may be provided the services of a fiscal agent. The fiscal agent is responsible for complying with the person's duties as an employer under the UI law. This bill provides that a private agency that serves as a fiscal agent or that contracts with a fiscal intermediary to serve as a fiscal agent may be found jointly and severally liable for amounts owed by the person receiving the support services if certain conditions are met.

Requests for information regarding benefit eligibility

Under current law, DWD may require any claimant to answer questions relating to the claimant's eligibility for benefits. A claimant is ineligible to receive benefits for any week in which the claimant fails to comply with a request by DWD to provide the information until the claimant complies with the request. If a claimant later complies with such a request, the claimant is eligible to receive benefits as of the week in which the failure to provide information occurred, if otherwise qualified.

The bill modifies this provision so that a claimant who fails to comply with such a request is ineligible beginning with the week with respect to which the department questions the claimant's eligibility, instead of the week in which the failure occurs. If a claimant later complies with such a request, the claimant is eligible to receive benefits as of the week with respect to which the department questions the claimant's eligibility, if otherwise qualified.

Ineligibility for benefits for concealment of certain payments

Current law provides that a claimant is totally ineligible for benefits, including any partial benefits for which the claimant would otherwise be eligible, for each week the claimant conceals wages or hours worked. This bill similarly provides that a claimant is totally ineligible for benefits for each week the claimant conceals various other types of payments, including holiday pay, vacation pay, termination pay, or sick pay.

Revisions to drug testing statutes

The bill includes a number of changes concerning the testing of UI claimants for the presence of controlled substances, including all of the following:

1. Providing employers who submit information to DWD about individuals who fail or refuse to take drug tests civil immunity for acts or omissions with respect to such submissions.

2. Providing for the transfer, at the end of each fiscal biennium, of any unencumbered moneys appropriated for drug testing and related expenses to the unemployment program integrity fund to be used for DWD UI program integrity activities.

3. Additional changes and clarifications regarding confidentiality of claimants' information related to drug testing.

Minor and technical changes

The bill includes a number of minor and technical changes to the UI law, including all of the following:

1. Correcting cross-references, including updating references to federal law.

2. Certain changes regarding eligibility for benefits under the work-share benefits statute.

3. Updating references to benefit checks to account for electronic payments and updating references to mailing to account for electronic delivery.

4. Clarifications to the UI appeals process.

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:

SB399,1 Section 1. 20.445 (1) (aL) of the statutes is amended to read:

SB399,4,8 20.445 (1) (aL) Unemployment insurance administration; controlled substances testing and substance abuse treatment. Biennially, the amounts in the schedule to conduct for conducting screenings of applicants, testing applicants for controlled substances, for the provision of substance abuse treatment to applicants and claimants, and for related expenses under s. 108.133. Notwithstanding s. 20.001 (3) (b), the unencumbered balance on June 30 of each odd-numbered year shall be transferred to the unemployment program integrity fund.

SB399,2 Section 2. 20.445 (1) (u) of the statutes is amended to read:

SB399,4,13 20.445 (1) (u) Unemployment interest payments and transfers. From the unemployment interest payment fund, a sum sufficient to make all moneys received from assessments under s. 108.19 (1m) for the purpose of making the payments and transfers authorized under s. 108.19 (1m).

SB399,3 Section 3. 20.445 (1) (v) of the statutes is amended to read:

SB399,4,18 20.445 (1) (v) Unemployment program integrity. From the unemployment program integrity fund, a sum sufficient to make all moneys received from sources identified under s. 108.19 (1s) (a) for the purpose of making the payments authorized under s. 108.19 (1s) (b).

SB399,4 Section 4. 108.02 (13) (i) of the statutes is amended to read:

SB399,5,18 108.02 (13) (i) An “employer" employer shall cease to be subject to this chapter only upon department action terminating coverage of such employer. The department may terminate an “employer's" employer's coverage, on its own motion or on application by the “employer" employer, by electronically delivering to the employer, or mailing a notice of termination to the “employer's" employer's last-known address, a notice of termination. An employer's coverage may be terminated whenever the employer ceased to exist, transferred its entire business, or would not otherwise be subject under any one or more of pars. (b) to (g). If any employer of agricultural labor or domestic service work becomes subject to this chapter under par. (c) or (d), with respect to such employment, and such the employer is otherwise subject to this chapter with respect to other employment, the employer shall continue to be covered with respect to agricultural labor or domestic service, or both, while the employer is otherwise subject to this chapter, without regard to the employment or wage requirements under par. (c) or (d). If a termination of coverage is based on an employer's application, it shall be effective as of the close of the quarter in which the application was filed. Otherwise, it shall be effective as of the date specified in the notice of termination.

SB399,5 Section 5. 108.04 (1) (hm) of the statutes is amended to read:

SB399,6,7 108.04 (1) (hm) The department may require any claimant to appear before it and to answer truthfully, orally or in writing, any questions relating to the claimant's eligibility for benefits or to provide such demographic information as may be necessary to permit the department to conduct a statistically valid sample audit of compliance with this chapter. A claimant is not eligible ineligible to receive benefits for any week in about which the claimant fails to comply with a request by the department to provide the information required under this paragraph, or any subsequent week, and remains ineligible until the claimant complies with the request. Except as provided in sub. (2) (e) and (f), if a claimant later complies with a request by the department within the period specified in s. 108.09 (2) (c), the claimant is eligible to receive benefits as of the week in which the failure occurred about which the department questions the claimant's eligibility, if otherwise qualified.

SB399,6 Section 6. 108.04 (1) (hr) of the statutes is created to read:

SB399,6,17 108.04 (1) (hr) The department may require any claimant to appear before it and to provide, orally or in writing, demographic information that is necessary to permit the department to conduct a statistically valid sample audit of compliance with this chapter. A claimant is ineligible to receive benefits for any week in which the claimant fails to comply with a request by the department to provide the information required under this paragraph and remains ineligible until the claimant complies with the request. If a claimant later complies with a request by the department within the period specified in s. 108.09 (2) (c), the claimant is eligible to receive benefits as of the week in which the failure occurred, if otherwise qualified.