Amendment AA8-AB21

LRBa0176/1

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1995 - 1996 LEGISLATURE

ASSEMBLY AMENDMENT 8, To 1995 ASSEMBLY BILL 21

January 26, 1995 - Offered by Committee on Insurance, Securities and Corporate Policy.

AB21-AA8,1,1 At the locations indicated, amend the bill as follows:

AB21-AA8,1,3 1. Page 1, line 5: after "programs;" insert "increasing the earned income tax credit;".

AB21-AA8,1,5 2. Page 1, line 9: after the semicolon insert "child care funding; expanding medical assistance eligibility for certain children in low-income families;".

AB21-AA8,1,6 3. Page 4, line 20: after that line insert:

AB21-AA8,1,7 " Section 3m. 46.40 (4) (a) of the statutes is amended to read:

AB21-AA8,2,2 46.40 (4) (a) For distribution for child care services under s. 46.98 (2m), (3) and (4g), the department shall allocate not more than $13,991,100 $17,741,100 for the last 6 months of 1993 1995, not more than $28,048,600 $35,548,600 for 1994 1996 and not more than $14,057,400 $17,807,400 for the first 6 months of 1995 1997. From the amounts specified in this paragraph for 1994 1996 and the first 6 months of 1995 1997, the department shall transfer to the distribution under sub. (3) for child care services under s. 46.98 (4g) amounts that the department shall determine based on the amount expended in 1992 1994 by county departments under s. 46.215, 46.22 and 46.23 and by nonprofit organizations as described in s. 46.98 (2) (a) for child care services to assist families in stress and to preserve family units.".

AB21-AA8,2,3 4. Page 10, line 20: after that line insert:

AB21-AA8,2,4 " Section 11b. 49.46 (1) (ar) of the statutes is created to read:

AB21-AA8,2,9 49.46 (1) (ar) 1. If the change requested under subd. 3. in the approved state plan for services under 42 USC 1396 is approved by the federal department of health and human services, the department of health and social services shall disregard income from the individuals described under subd. 2. in an amount sufficient for the individuals to become eligible for medical assistance under this section.

AB21-AA8,2,13 2. The department shall disregard income under subd. 1. to allow all individuals born after September 30, 1983, who have not yet attained 19 years of age and whose family income, before any income is disregarded under this paragraph, does not exceed 185% of the poverty line for a family the size of the individual's family.

AB21-AA8,2,17 3. The department shall request a change in the approved state plan for services under 42 USC 1396 to allow, pursuant to the authority granted under 42 USC 1396a (r) (2), the use of federal matching funds to provide medical assistance coverage to individuals under this paragraph beginning on January 1, 1996.

AB21-AA8, s. 11c Section 11c. 71.07 (9e) (ad) (intro.) of the statutes is amended to read:

AB21-AA8,2,24 71.07 (9e) (ad) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, a person who has one qualifying child who has the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8, s. 11e Section 11e. 71.07 (9e) (af) of the statutes is created to read:

AB21-AA8,3,6 71.07 (9e) (af) For taxable years beginning on or after January 1, 1995, a person who has one qualifying child who has the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8,3,10 1. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is the maximum credit income under par. (at) or less, the credit shall be the person's earned income multiplied by 1.29%.

AB21-AA8,3,14 2. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 1.29%.

AB21-AA8,3,20 3. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 0.92%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,3,23 4. If the person's federal adjusted gross income is at or above the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the credit shall be the lesser of one of the following:

AB21-AA8,3,25 a. If the person's earned income is the maximum credit income under par. (at) or less, the person's earned income multiplied by 1.29%.

AB21-AA8,4,3 b. If the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold under par. (at), the maximum credit income multiplied by 1.29%.

AB21-AA8,4,8 c. If the person's earned income is more than the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 0.92%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,4,12 d. The amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 0.92%, the difference between the person's federal adjusted gross income and the phase-out income threshold under par. (at).

AB21-AA8, s. 11h Section 11h. 71.07 (9e) (ah) (intro.) of the statutes is amended to read:

AB21-AA8,4,19 71.07 (9e) (ah) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, a person who has 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8, s. 11j Section 11j. 71.07 (9e) (aj) of the statutes is created to read:

AB21-AA8,4,25 71.07 (9e) (aj) For taxable years beginning on or after January 1, 1995, a person who has 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8,5,4 1. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is the maximum credit income under par. (at) or less, the credit shall be the person's earned income multiplied by 7%.

AB21-AA8,5,8 2. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 7%.

AB21-AA8,5,14 3. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 5%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,5,17 4. If the person's federal adjusted gross income is at or above the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the credit shall be the lesser of one of the following:

AB21-AA8,5,19 a. If the person's earned income is the maximum credit income under par. (at) or less, the person's earned income multiplied by 7%.

AB21-AA8,5,22 b. If the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold under par. (at), the maximum credit income multiplied by 7%.

AB21-AA8,6,2 c. If the person's earned income is more than the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 5%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,6,5 d. The amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 5%, the difference between the person's federal adjusted gross income and the phase-out income threshold under par. (at).

AB21-AA8, s. 11L Section 11L. 71.07 (9e) (ap) (intro.) of the statutes is amended to read:

AB21-AA8,6,12 71.07 (9e) (ap) (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993 and before January 1, 1995, a person who has more than 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8, s. 11p Section 11p. 71.07 (9e) (ar) of the statutes is created to read:

AB21-AA8,6,18 71.07 (9e) (ar) For taxable years beginning on or after January 1, 1995, a person who has more than 2 qualifying children who have the same principal place of abode as the person may credit against the tax imposed under s. 71.02 an amount equal to the amount calculated by one of the following methods, based on the person's earned income or federal adjusted gross income:

AB21-AA8,6,22 1. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is the maximum credit income under par. (at) or less, the credit shall be the person's earned income multiplied by 21%.

AB21-AA8,7,2 2. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold, the credit shall be the maximum credit income multiplied by 21%.

AB21-AA8,7,8 3. If the person's federal adjusted gross income is below the phase-out income threshold under par. (at) and the person's earned income is more than the phase-out income threshold but not more than the maximum income under par. (at), the credit shall be the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 15%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,7,11 4. If the person's federal adjusted gross income is at or above the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the credit shall be the lesser of one of the following:

AB21-AA8,7,13 a. If the person's earned income is the maximum credit income under par. (at) or less, the person's earned income multiplied by 21%.

AB21-AA8,7,16 b. If the person's earned income is more than the maximum credit income under par. (at) but not more than the phase-out income threshold under par. (at), the maximum credit income multiplied by 21%.

AB21-AA8,7,21 c. If the person's earned income is more than the phase-out income threshold under par. (at) but not more than the maximum income under par. (at), the amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 15%, the difference between the person's earned income and the phase-out income threshold.

AB21-AA8,7,24 d. The amount obtained by subtracting from the maximum credit under par. (at), the amount obtained by multiplying by 15%, the difference between the person's federal adjusted gross income and the phase-out income threshold under par. (at).

AB21-AA8, s. 11r Section 11r. 71.07 (9e) (at) 2. of the statutes is amended to read:

AB21-AA8,8,12 71.07 (9e) (at) 2. For taxable years beginning on or after January 1, 1995 1996, the maximum credit income, phase-out income threshold and the maximum income under subd. 1. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of June of the current year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of June of the previous year, as determined by the federal department of labor. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall adopt by rule the changes in dollar amounts required under this paragraph every year, and incorporate the changes in the income tax forms and instructions.

AB21-AA8, s. 11t Section 11t. 71.07 (9e) (at) 3. (intro.) of the statutes is amended to read:

AB21-AA8,8,16 71.07 (9e) (at) 3. (intro.) For taxable years beginning on or after January 1, 1994 after December 31, 1993, and before January 1, 1995, the maximum credit is one of the following amounts:

AB21-AA8, s. 11v Section 11v. 71.07 (9e) (at) 4. of the statutes is created to read:

AB21-AA8,8,19 71.07 (9e) (at) 4. For taxable years beginning on or after January 1, 1995, the maximum credit is one of the following amounts:

AB21-AA8,8,22 a. If the person has one qualifying child who has the same principal place of abode as the person, the maximum credit income under subd. 1. a. multiplied by 1.29%.

AB21-AA8,8,24 b. If the person has 2 qualifying children who have the same principal place of abode as the person, the maximum credit income under subd. 1. a. multiplied by 7%.

AB21-AA8,9,3 c. If the person has more than 2 qualifying children who have the same principal place of abode as the person, the maximum credit income under subd. 1. a. multiplied by 21%.".

AB21-AA8,9,4 5. Page 15, line 25: after that line insert:

AB21-AA8,9,12 "(13)  Healthy start expansion benefit costs. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of health and social services under section 20.435 (1) (b) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $737,200 for fiscal year 1995-96 and the dollar amount is increased by $3,361,100 for fiscal year 1996-97 to pay the state share of medical assistance benefit costs for persons who are eligible for medical assistance as a result of the change in the approved state plan under section 49.46 (1) (ar) 3. of the statutes, as created by this act.

AB21-AA8,9,20 (14)  Healthy start expansion administrative costs. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of health and social services under section 20.435 (1) (bm) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $17,000 for fiscal year 1995-96 and the dollar amount is increased by $75,400 for fiscal year 1996-97 to pay the state share of medical assistance administrative contract costs related to persons who are eligible for medical assistance as a result of the change in the approved state plan under section 49.46 (1) (ar) 3. of the statutes, as created by this act.

AB21-AA8,9,24 (15)  Healthy start expansion county income maintenance costs. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of health and social services under section 20.435 (4) (de) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $65,400 for fiscal year 1995-96 and the dollar amount is increased by $289,400 for fiscal year 1996-97 to pay county income maintenance costs related to persons who are eligible for medical assistance as a result of the change in the approved state plan under section 49.46 (1) (ar) 3. of the statutes, as created by this act.

AB21-AA8,10,12 (16) Low-income child care. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of health and social services under section 20.435 (7) (b) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $7,500,000 for fiscal year 1995-96 and the dollar amount is increased by $7,500,000 for fiscal year 1996-97 to increase funding for low-income child care, as defined in section 46.98 (1) (bm) of the statutes, at-risk child care, as defined in section 46.98 (1) (ad) of the statutes, and respite child care, as defined in section 46.98 (1) (d) of the statutes.".

AB21-AA8,10,13 (End)