LRB-4118/1
TY/GMM/JTK:skg:ks
1995 - 1996 LEGISLATURE
October 2, 1995 - Introduced by Representatives Gard, Huebsch, Hutchison,
Dobyns, Ladwig, Grothman, Lazich, Krusick, Ziegelbauer, Johnsrud, Kelso,
Kaufert, Porter, Ainsworth, Hahn, Duff, Goetsch, Urban, Musser, Green,
Ott, Hoven, Owens, Walker, F. Lasee, Olsen, Coleman, Nass, Seratti,
Klusman, Freese, Handrick, Vrakas, Foti, Skindrud, Lorge, Jensen,
Brandemuehl, Ourada, Prosser, Ward, Powers, Gunderson, Underheim,
Kreibich, Silbaugh, Lehman, Zukowski
and Schneiders, cosponsored by
Senators Buettner, Zien, Rosenzweig, Welch, Breske, Petak, Farrow,
Fitzgerald, Panzer, Darling, A. Lasee, Drzewiecki
and Andrea. Referred to
Joint survey committee on Tax Exemptions.
AB591,3,17 1An Act to repeal 20.435 (4) (cn), 20.435 (4) (d), 20.435 (4) (dc), 20.435 (4) (de),
220.435 (4) (df), 20.435 (4) (dg), 46.40 (4m), 46.45 (1), 46.979 (2) (a), 49.193 (4)
3(j) 4., 49.193 (7), 49.26 (1) (j), 49.27 (5) (e) 2., 49.50 (6e) (a) and 560.14 (1) (a) 2.;
4to renumber 49.193 (9m) (a) and 49.46 (1) (e); to renumber and amend
516.841 (1), 20.435 (4) (dz), 49.124 (1m), 49.46 (1) (cr) and 49.50 (6e) (b); to
6consolidate, renumber and amend
560.14 (1) (a) (intro.) and 1.; to amend
713.101 (6) (a), 16.841 (2), 20.435 (1) (b), 20.435 (1) (bm), 20.435 (1) (o), 46.032,
846.215 (1) (k), 46.22 (1) (b) 2. a., 46.22 (1) (b) 2. d., 46.25 (6), 46.253 (2), 46.258
9(1), 46.258 (2) (a) 1., 46.40 (1) (a), 46.45 (intro.), 46.45 (6), 46.62 (2), 46.979 (1),
1046.979 (2) (a), 46.979 (2) (c) (intro.), 46.98 (1) (b), 46.98 (2) (a), 46.98 (4) (a) 2.,
1146.98 (4) (b), 46.986 (1) (b), 46.986 (1) (m), 46.987 (1) (a), 46.987 (2) (a), 46.995
12(2) (c), 48.427 (3) (a) 5., 48.428 (2), 48.428 (4), 48.981 (2), 49.015 (2), 49.046 (4)
13(f), 49.049 (3), 49.125 (1), 49.181 (1) (intro.), (a), (c), (d), (f) and (g) and (2), 49.19
14(4e) (a), 49.19 (11) (a) 1. a. (intro.), 49.19 (20), 49.191 (2), 49.193 (2) (a), 49.193
15(4) (g), 49.193 (6) (c), 49.193 (8) (bm), 49.193 (10m), 49.195 (title), 49.195 (1),
1649.195 (3), 49.197 (1m), 49.197 (3), 49.197 (4), 49.20 (3), 49.26 (title), 49.26 (1)

1(e), 49.26 (1) (g) (intro.), 49.26 (1) (g) 1., 49.26 (1) (gm) (intro.), 49.26 (1) (h) 1.
2a., 49.26 (1) (hm), 49.26 (1) (hr), 49.30 (1) (intro.), 49.32 (7) (a), 49.32 (9) (a),
349.32 (9) (b), 49.32 (10) (intro.), 49.33 (1) (b), 49.33 (1) (c), 49.33 (9), 49.36 (title),
449.36 (3) (a), 49.36 (3) (g), 49.36 (4), 49.36 (5), 49.36 (6), 49.36 (7), 49.45 (6m) (br)
51., 49.46 (1) (a) 1., 49.46 (1) (a) 1m., 49.46 (1) (a) 6., 49.46 (1) (a) 9., 49.46 (1) (a)
610., 49.46 (1) (a) 11., 49.46 (1) (a) 12., 49.46 (1) (a) 13., 49.46 (1) (cg), 49.46 (1)
7(cs), 49.46 (1) (d) 1., 49.47 (4) (a) (intro.), 49.47 (4) (am) (intro.), 49.50 (6k) (a),
849.50 (6k) (b), 49.52 (1) (ad) 1., 49.52 (1) (am), 49.52 (1) (d), 49.52 (5), 49.83,
949.84 (5), 49.95 (4m) (a), 49.96, 59.07 (97), 71.54 (2) (a) (intro.), 106.21 (1) (g),
10106.215 (1) (fm), 115.347, 115.40 (4) (b), 115.40 (4) (c) 1., 115.45 (3m) (a) 2.,
11119.82 (1) (a) 2., 120.13 (27m), 230.04 (13) (a) and (e) 1. and 2., 230.147 (1),
12230.147 (2), 230.147 (3), 767.045 (1) (c) 1., 767.075 (1) (c), 767.15 (1), 767.24 (6)
13(c), 767.32 (1) (a), 767.32 (1) (b) 1., 767.47 (6) (a) and (b), 814.61 (13) and 948.22
14(4) (b); to repeal and recreate 13.101 (6) (a), 46.032, 46.495 (1) (am), 49.124
15(3), 49.19 (11) (a) 1. a. (intro.), 49.191 (1), 49.191 (3) (a) and (b), 49.193 (8) (bm),
1649.193 (10m), 49.197 (1m), 49.197 (4), 49.20 (3), 49.26 (2) (b), 49.33 (2), 49.33
17(8) (a), 49.36 (2) and 49.45 (6m) (br) 1.; and to create 16.39 (4) (bm), 16.75 (6)
18(bm), 16.75 (6) (bs), 16.841 (1) (b), 20.435 (4) (dz), 20.445 (3) (jm), 46.98 (1) (ar),
1946.98 (6), 48.40 (1m), 48.57 (3m), 49.001 (9), 49.124 (1m) (b), 49.124 (1m) (c),
2049.141, 49.143, 49.145, 49.146, 49.147, 49.148, 49.149, 49.151, 49.152, 49.153,
2149.155, 49.157, 49.159, 49.161, 49.181, 49.19 (4e) (c), 49.193 (2) (am), 49.193 (4)
22(k) 1m., 49.193 (4m), 49.193 (6) (e), 49.193 (9m) (ag), 49.193 (12), 49.21 (1) (c),
2349.25 (10), 49.27 (13), 49.46 (1) (a) 6m., 49.46 (1) (a) 16., 49.46 (1) (cb), 49.46 (1)
24(co) 4., 49.46 (1) (cr) 2., 49.46 (1) (e) 2., 49.465 (7), 49.47 (4) (az), 49.77 (3v),
25102.07 (17), 102.07 (18), 102.29 (8), 227.01 (13) (zr) and 227.01 (13) (zs) of the

1statutes; relating to: creating a new public assistance program for families
2with dependent children, modifying the sunset of the aid to families with
3dependent children program, modifying administration of the food stamp
4program, modifying the eligibility requirements of certain recipients of medical
5assistance, creating a program to provide payment to a relative, other than a
6parent, who is providing care and maintenance for a child, eliminating
7postsecondary education and vocational skills training from the job
8opportunities and basic skills program, applying the learnfare provisions
9statewide to certain individuals who are 6 to 19 years of age, eliminating child
10care funded under community aids, modifying eligibility requirements for
11low-income and at-risk child care, creating a tax exemption, making
12modifications to the job opportunities and basic skills program, making
13modifications to the food stamp employment and training program,
14consolidating state general purpose revenue appropriations for public
15assistance and local aid, providing an exemption from emergency rule
16procedures, providing an exemption from rule-making procedures, granting
17rule-making authority and making appropriations.
Analysis by the Legislative Reference Bureau
This bill requires the department of health and social services (DHSS) to
request a waiver, if necessary, or seek federal legislation, if necessary, to allow the
state to receive federal funding to operate a new public assistance program, called
Wisconsin works, instead of aid to families with dependent children (AFDC). If the
necessary waivers are granted, or the legislation is enacted, individuals who meet
certain criteria will be eligible to participate in Wisconsin works. Unlike AFDC,
however, Wisconsin works is not an entitlement program. A more detailed
description of Wisconsin works follows.

Transfer of economic support from health and social
services to industry, labor and job development
Under the 1995-97 biennial budget bill (1995 Wisconsin Act 27), the
administration of economic support programs, such as AFDC, is transferred from
DHSS (renamed the department of health and family services (DHFS)) to the
department of industry, labor and job development (DILJD) (currently known as the
department of industry, labor and human relations). Because Wisconsin works is an
economic support program that begins no sooner than July 1, 1996, it will be
administered by DILJD. If the bill is enacted before July 1, 1996, DHSS is required
to seek any necessary waivers from the secretaries of the federal department of
health and human services, the federal department of agriculture and the federal
social security administration, or to seek enactment of federal legislation, if
necessary to receive federal funding to operate Wisconsin works in lieu of the AFDC
program. If the bill is enacted after July 1, 1996, DILJD is required to seek any
necessary waivers or federal legislation.
Applicability
If the necessary waivers are granted or the necessary federal legislation is
enacted and if DILJD determines that sufficient funding is available to operate
Wisconsin works, DILJD may begin implementing Wisconsin works in lieu of the
current AFDC program in certain counties or for certain groups no sooner than July
1, 1996, and is required to implement Wisconsin works statewide no later than
September 1, 1997. AFDC, as well as existing pilot programs under the AFDC
program, would sunset with the statewide implementation of Wisconsin works or on
January 1, 1999, whichever is sooner.
Wisconsin works agency
This bill permits DILJD to enter into contracts with any person for the local
administration of the Wisconsin works program (Wisconsin works agency). The
Wisconsin works agency administers Wisconsin works in a geographical area
determined by DILJD. The Wisconsin works agency determines the eligibility of the
applicants for all of the components of the Wisconsin works program and provides
job search and employment and financial planning services to participants.
Employment, training and job access loan components
Eligibility
An individual is eligible to participate in the Wisconsin works employment,
training and job access loan components, described below, if the individual has lived
in this state for at least 60 consecutive days before applying for Wisconsin works; is
the custodial parent of a dependent child; is at least 18 years old, with certain
exceptions; is a member of a Wisconsin works group whose total income does not
exceed 115% of the federal poverty line; is a member of a Wisconsin works group
whose assets do not exceed $2,500; and meets certain other nonfinancial eligibility
requirements. With certain exceptions, an individual may not participate in the
Wisconsin works employment component for more than 60 months which need not
be consecutive. Participation in the job opportunities and basic skills program

(JOBS) after the date on which this bill becomes law counts toward the 60-month
limit. JOBS is the current employment and training program for AFDC recipients.
A Wisconsin works agency may require an individual who applies for a trial job,
community service job or transitional placement (employment position), described
below, to participate in job orientation and job search activities while his or her
application is being processed. When determining the appropriate placement for a
participant, the Wisconsin works agency must give priority to placement of the
participant in an unsubsidized job over placement in an employment position. A
Wisconsin works agency may require a participant in an employment position to
engage in training and job search activities as part of the participant's participation
requirement.
Trial jobs
If the Wisconsin works agency determines that it cannot place an individual in
an unsubsidized job, the agency may place the individual in a partially subsidized
work placement, called a trial job. The individual may participate in any one trial
job for a maximum of 6 months, with the opportunity for a 3-month extension under
certain circumstances. An individual may participate in the trial job component for
a maximum of 2 years, which may be extended if the Wisconsin works agency
determines that local labor market conditions preclude a reasonable job opportunity
in an unsubsidized job.
Under this component, the individual is considered an employe of the employer
for purposes of worker's compensation coverage and receives minimum wage for each
hour actually worked, not to exceed 40 hours per week.
Community service jobs
If the Wisconsin works agency determines that an individual is unable to obtain
unsubsidized employment, and that a trial job is unavailable or inappropriate, the
Wisconsin works agency may place the individual in a community service job. The
community service job is one that DILJD determines would serve a useful public
purpose or the cost of which is at least partially offset by the revenue generated by
it. An individual may participate in any one community service job for a maximum
of 6 months, with the opportunity for a 3-month extension under certain
circumstances. An individual may participate in the community service job
component for a maximum of 2 years, which may be extended if the Wisconsin works
agency determines that local labor market conditions preclude a reasonable job
opportunity in an unsubsidized job.
Under this component, the individual receives a grant equal to 75% of the
minimum wage computed for one month of full-time employment. The grant is paid
biweekly on a prorated basis. The Wisconsin works agency determines the number
of hours the individual will be required to work, not to exceed 40 hours per week,
based on criteria established by DILJD. For every hour that the individual fails to
participate, his or her grant is reduced by an amount equal to 75% of the minimum
wage computed for one hour.
Transitional placement
If the Wisconsin works agency determines that an individual has been
incapacitated for a period of at least 60 days, is needed in the home because of the

illness or incapacity of any other member of the Wisconsin works group or is
incapable of performing a trial job or community service job, the Wisconsin works
agency may place that individual in a transitional placement. The Wisconsin works
agency is required to assign an individual participating in a transitional placement
to a work activity. The Wisconsin works agency may require an individual
participating in this component to participate in training or education programs;
volunteer activities; counseling or physical rehabilitation activities; or alcohol and
other drug abuse evaluation, assessment and treatment. An individual may
participate in the transitional placement component for a maximum of 2 years,
which may be extended under certain circumstances.
Under this component, the individual receives a monthly grant equal to 70% of
the minimum wage computed for one month of full-time employment. The
Wisconsin works agency determines the number of hours the individual will be
required to work, not to exceed 40 hours per week, based on criteria established by
DILJD. For every hour that the individual fails to participate, his or her grant is
reduced by an amount equal to 70% of the minimum wage computed for one hour.
Job access loans
The bill permits individuals who meet the financial and nonfinancial eligibility
criteria to receive a job access loan if the loan is needed to address an immediate and
discrete financial crisis and the loan is needed to obtain or continue employment.
The financial crisis may not be the result of the individual's failure to accept a bona
fide offer of employment or the individual's termination of a job without good cause.
To receive the loan, the individual may not be in default with respect to any previous
job access loan or repayment of any wage or grant overpayment. Under the bill,
under certain conditions, a custodial parent who is under the age of 18 may obtain
a job access loan if he or she will be 18 within 2 months of applying for the loan.
Sanctions
An individual who refuses to participate 3 times in any Wisconsin works
employment component is ineligible to participate in that component. The bill
specifies several actions for which a person is considered to refuse to participate,
including failing to appear for an interview, voluntarily leaving employment without
good cause and losing employment as a result of being discharged for cause.
Supplemental security income
A custodial parent who receives supplemental security income is not eligible to
participate in a Wisconsin works employment position. He or she is instead eligible
to receive an additional $77 per month for each dependent child with respect to whom
he or she is a custodial parent.
Health care coverage
Medical assistance
Under current federal law, states are required to provide health care coverage
to persons who receive AFDC under the medical assistance (MA) program. In
addition, states must provide MA to individuals who meet the requirements of AFDC
but who do not actually receive AFDC. Pregnant women are eligible for MA if they
meet the income and resource requirements of AFDC. Persons who are no longer

eligible for AFDC payments because of an increase in their income are eligible for MA
for 12 months after they lose eligibility for AFDC. Finally, children covered by
adoption assistance agreements and children in foster care are eligible for MA.
Certain other persons who are known as optional categorically eligible are covered
by MA in this state. They include children who are under age 18 who would be
eligible for AFDC if they met the definition of dependent child, but who are in
privately subsidized foster care or live in institutions; and certain other children and
pregnant women who meet certain income requirements.
Health care coverage under Wisconsin works
Under this bill, persons described above will no longer be eligible for MA.
Instead, they are eligible for health care coverage under Wisconsin works, if they
meet the income and resource limitations.
A Wisconsin works group (which includes an individual, the dependent
children of the individual, the dependent children of the individual's dependent
children, the individual's spouse, if the spouse lives with the individual, or the
nonmarital parent of the dependent children, if that person lives with the individual)
is eligible for health care benefits and services if the income of the group is at or below
165% of the federal poverty line, the group meets certain asset limitations and the
individuals of the group meet certain nonfinancial criteria. If the group is already
receiving benefits under the health care provisions, the group may continue to
receive the benefits if the income of the group is at or below 200% of the federal
poverty line. A person in the group who receives supplemental security income is
eligible for MA, rather than coverage under Wisconsin works.
A pregnant woman with no dependent children is eligible for health care
benefits and services if her income is at or below 165% of the federal poverty line and
if she meets certain asset and nonfinancial criteria.
A custodial parent who is under the age of 18 (minor) and the minor's dependent
children are eligible for health care benefits and services only if the minor meets
either of the following criteria:
1. The minor lives with his or her custodial parent and the income of that parent
is at or below 165% of the federal poverty line.
2. The minor is in a court-ordered out-of-home placement or a supported
living arrangement supervised by an adult and has an income of 165% of the federal
poverty line.
If the child of a minor does not live with the minor, but lives with a relative who
is eligible for payments under the kinship care program (described below) with
respect to that child, the child is eligible for MA, rather than health coverage under
Wisconsin works.
Health plan
Under the bill, DHFS is required to contract with a health maintenance
organization (HMO) or other health provider to provide services under the Wisconsin
works health plan. The health plan includes coverage of the care and services
required under current federal law under the MA provisions. The health care plan
does not include the following:
1. Nonpreventive dental care.

2. Eyeglasses.
3. Hearing aids.
4. Home health, private duty nursing and personal care services in excess of
40 visits per year.
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