SB327, s. 2 5Section 2. 15.227 (3) of the statutes, as affected by 1997 Wisconsin Act 3, is
6amended to read:
SB327,9,97 15.227 (3) (title) Council on unemployment compensation insurance. There
8is created in the department of workforce development a council on unemployment
9compensation insurance appointed by the secretary of workforce development to
10consist of 5 representatives of employers and 5 representatives of employes
11appointed to serve for 6-year terms and a permanent classified employe of the
12department of workforce development who shall serve as nonvoting chairperson. In
13making appointments to the council, the secretary shall give due consideration to

1achieving balanced representation of the industrial, commercial, construction,
2nonprofit and public sectors of the state's economy. One of the employer
3representatives shall be an owner of a small business or a representative of an
4association primarily composed of small businesses. In this subsection, "small
5business" means an independently owned and operated business which is not
6dominant in its field and which has had less than $2,000,000 in gross annual sales
7for each of the previous 2 calendar years or has 25 or fewer employes. A member
8vacates his or her office if the member loses the status upon which his or her
9appointment is based.
SB327, s. 3 10Section 3. 16.48 (1) (a) (intro.) of the statutes is amended to read:
SB327,9,1311 16.48 (1) (a) (intro.) A statement of unemployment compensation insurance
12financial outlook, which shall contain the following, together with the secretary's
13recommendations and an explanation for such recommendations:
SB327, s. 4 14Section 4. 16.48 (1) (a) 1., 2. and 6. and (b) of the statutes are amended to read:
SB327,9,1815 16.48 (1) (a) 1. Projections of unemployment compensation insurance
16operations under current law through at least the 2nd year following the close of the
17biennium, including benefit payments, tax collections, borrowing or debt
18repayments and amounts of interest charges, if any.
SB327,9,2019 2. Specific proposed changes in the laws relating to unemployment
20compensation insurance financing, benefits and administration.
SB327,9,2221 6. If unemployment compensation insurance program debt is projected at the
22end of the forecast period, the reasons why it is not proposed to liquidate the debt.
SB327,9,2423 (b) A report summarizing the deliberations of the council on unemployment
24compensation insurance and the position of the council, if any, concerning each

1proposed change in the unemployment compensation insurance laws submitted
2under par. (a).
SB327, s. 5 3Section 5. 16.48 (2) and (3) of the statutes, as affected by 1997 Wisconsin Act
43
, are amended to read:
SB327,10,125 16.48 (2) Upon receipt of the statement and report under sub. (1), the governor
6may convene a special committee consisting of the secretary of workforce
7development and the legislative leaders specified in sub. (1) to review the statement
8and report. Upon request of 2 or more of the legislative leaders specified in sub. (1),
9the governor shall convene such a committee. The committee shall attempt to reach
10a consensus concerning proposed changes to the unemployment compensation
11insurance laws and shall submit its recommendations to the governor and
12legislature concurrently with the statement furnished under sub. (3).
SB327,10,18 13(3) On or about February 15 of each odd-numbered year, the secretary of
14workforce development, under the direction of the governor, shall submit to each
15member of the legislature an updated statement of unemployment compensation
16insurance financial outlook which shall contain the information specified in sub. (1)
17(a), together with the governor's recommendations and an explanation for such
18recommendations, and a copy of the report required under sub. (1) (b).
SB327, s. 6 19Section 6. 19.85 (1) (ee) of the statutes is amended to read:
SB327,10,2220 19.85 (1) (ee) Deliberating by the council on unemployment compensation
21insurance in a meeting at which all employer members of the council or all employe
22members of the council are excluded.
SB327, s. 7 23Section 7. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
24the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
SB327, s. 8 1Section 8 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27,
2section 612, is amended to read:
SB327,11,143 20.445 (1) (gd) Unemployment interest and penalty payments. From the
4moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
5108.22 and assessments under s. 108.19 (1m), all moneys not appropriated under
6pars. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account
7from the appropriation account under par. (gh)
for the payment of benefits specified
8in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of
9interest to employers under s. 108.17 (3m) and, for the payment of interest due on
10advances from the federal unemployment account under title XII of the social
11security act to the unemployment reserve fund, and for payments made to the
12unemployment reserve fund to obtain a lower interest rate or deferral of interest
13payments on these advances, except as otherwise provided in s. 108.20, and for the
14payment of career counseling center grants under s. 106.14.
SB327, s. 9
1Section 9 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27,
2section 612m, is amended to read:
SB327,12,143 20.445 (1) (gd) Unemployment interest and penalty payments. From the
4moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
5108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all
6moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred
7to this appropriation account from the appropriation account under par. (gh)
for the
8payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132
9(1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the
10payment of interest due on advances from the federal unemployment account under
11title XII of the social security act to the unemployment reserve fund, and for
12payments made to the unemployment reserve fund to obtain a lower interest rate or
13deferral of interest payments on these advances, except as otherwise provided in s.
14108.20, and for payment of career counseling center grants under s. 106.14.
SB327, s. 10 15Section 10 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act
1627
, section 613, is amended to read:
SB327,13,317 20.445 (1) (gd) Unemployment interest and penalty payments. From the
18moneys received as interest and penalties collected under ss. 108.04 (11) (c) and
19108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all
20moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred
21to this appropriation account from the appropriation account under par. (gh)
for the
22payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132
23(1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the
24payment of interest due on advances from the federal unemployment account under
25title XII of the social security act to the unemployment reserve fund, and for

1payments made to the unemployment reserve fund to obtain a lower interest rate or
2deferral of interest payments on these advances, except as otherwise provided in s.
3108.20.
SB327, s. 11 4Section 11. 20.445 (1) (gf) of the statutes is amended to read:
SB327,13,125 20.445 (1) (gf) Employment security administration. From the moneys received
6as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22,
7the amounts in the schedule for the administration of employment service programs
8and unemployment compensation insurance programs under ch. 108 and s. 106.09
9and federal or state unemployment compensation insurance programs authorized by
10the governor under s. 16.54; and for payments to satisfy any federal audit exception
11concerning a payment from the unemployment reserve fund or any federal aid
12disallowance involving the unemployment compensation insurance program.
SB327, s. 12 13Section 12. 20.445 (1) (gg) of the statutes is created to read:
SB327,13,1714 20.445 (1) (gg) Unemployment information technology systems; interest and
15penalties.
From the moneys received as interest and penalties collected under ss.
16108.04 (11) (c) and (13) (c) and 108.22, as a continuing appropriation, the amounts
17in the schedule for the purpose specified in s. 108.19 (1e).
SB327, s. 13 18Section 13. 20.445 (1) (gh) of the statutes is created to read:
SB327,13,2319 20.445 (1) (gh) Unemployment information technology systems; assessments.
20All moneys received from assessments levied under s. 108.19 (1e) and 1997
21Wisconsin Act .... (this act), section 164 (2), for the purpose specified in s. 108.19 (1e).
22The treasurer of the unemployment reserve fund may transfer moneys from this
23appropriation account to the appropriation account under par. (gd).
SB327, s. 14 24Section 14. 20.445 (1) (n) of the statutes is amended to read:
SB327,14,11
120.445 (1) (n) Unemployment administration; federal moneys. All federal
2moneys received for the employment service under s. 106.09 (4) to (6) or, for the
3administration of unemployment compensation under ch. 108, and any federal
4moneys paid to the department
insurance or for the performance of its the
5department's
functions under ch. 108, and for its conduct of public employment
6offices consistent with s. 106.09 (4) to (6),
and for its other efforts to regularize
7employment;, to pay the compensation and expenses of appeal tribunals and of
8councils; and to pay allowances stimulating education during unemployment, to be
9used for such purposes, and to transfer to par. (nb) an amount determined by the
10treasurer of the unemployment reserve fund not exceeding the lesser of the amount
11specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nb)
.
SB327, s. 15 12Section 15. 20.445 (1) (nb) of the statutes is created to read:
SB327,14,2413 20.445 (1) (nb) Unemployment information technology systems; federal moneys.
14The amounts in the schedule, as authorized by the governor for this purpose under
15s. 16.54, for the purpose specified in s. 108.19 (1e). All moneys transferred from par.
16(n) for this purpose shall be credited to this appropriation account. Notwithstanding
17s. 20.001 (3) (a), the treasurer of the unemployment reserve fund shall transfer any
18unencumbered balance in this appropriation account that is not needed or available
19to carry out the purpose of this appropriation to the appropriation account under par.
20(n). No moneys may be expended from this appropriation unless the treasurer of the
21unemployment reserve fund determines that such expenditure is currently needed
22for the purpose specified in s. 108.19 (1e). No moneys may be encumbered from this
23appropriation account after the beginning of the 3rd 12-month period beginning
24after the effective date of this paragraph .... [revisor inserts date].
SB327, s. 16 25Section 16. 40.02 (22) (b) 3. of the statutes is amended to read:
SB327,15,1
140.02 (22) (b) 3. Unemployment compensation insurance benefits.
SB327, s. 17 2Section 17. 40.65 (5) (b) 2. of the statutes is amended to read:
SB327,15,43 40.65 (5) (b) 2. Any unemployment compensation insurance benefit payable to
4the participant because of his or her work record.
SB327, s. 18 5Section 18. 45.71 (9) (a) of the statutes is amended to read:
SB327,15,96 45.71 (9) (a) Part-time or overtime pay, unemployment compensation
7insurance and income of the veteran's spouse are considered income only if the
8department or authorized lender deems such sources of income to be regular and
9dependable.
SB327, s. 19 10Section 19. 46.27 (5) (i) of the statutes is amended to read:
SB327,16,511 46.27 (5) (i) In the instances in which an individual who is provided long-term
12community support services under par. (b) for which the individual receives direct
13funding, serve directly as a fiscal agent or contract with a fiscal intermediary to serve
14as a fiscal agent for that individual for the purposes of performing the responsibilities
15and protecting the interests of the individual under the unemployment
16compensation insurance law. The county department or aging unit may elect to act
17as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for
18an individual who is provided long-term support services under s. 46.275, 46.277,
1946.278, 46.495, 51.42 or 51.437. The fiscal agent under this paragraph is responsible
20for remitting any federal unemployment compensation taxes or state unemployment
21compensation insurance contributions owed by the individual, including any
22interest and penalties which are owed by the individual; for serving as the
23representative of the individual in any investigation, meeting, hearing or appeal
24involving ch. 108 or the federal unemployment tax act (26 USC 3301 to 3311) in which
25the individual is a party; and for receiving, reviewing, completing and returning all

1forms, reports and other documents required under ch. 108 or the federal
2unemployment tax act on behalf of the individual. An individual may make an
3informed, knowing and voluntary election to waive the right to a fiscal agent. The
4waiver may be as to all or any portion of the fiscal agent's responsibilities. The waiver
5may be rescinded in whole or in part at any time.
SB327, s. 20 6Section 20. 47.035 (1) of the statutes is amended to read:
SB327,16,227 47.035 (1) Except as authorized in sub. (2) if an individual receives direct
8funding for personal assistance services that are provided to the individual under s.
947.02 (4) (c), and the services are provided through a county department of human
10services or social services or an aging unit, the county department or aging unit
11through which the services are provided shall serve directly as a fiscal agent or
12contract with a fiscal intermediary to serve as a fiscal agent for that individual for
13the purposes of performing the responsibilities and protecting the interests of the
14individual under the unemployment compensation insurance law. The fiscal agent
15under this subsection is responsible for remitting any federal unemployment
16compensation taxes or state unemployment compensation insurance contributions
17owed by the individual, including any interest and penalties which are owed by the
18individual; for serving as the representative of the individual in any investigation,
19meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (26
20USC 3301
to 3311) in which the individual is a party; and for receiving, reviewing,
21completing and returning all forms, reports and other documents required under ch.
22108 or the federal unemployment tax act on behalf of the individual.
SB327, s. 21 23Section 21. 49.19 (4) (dm) 4. of the statutes is amended to read:
SB327,16,2524 49.19 (4) (dm) 4. Qualifies for unemployment compensation insurance but
25refuses to apply for or accept unemployment compensation insurance; or
SB327, s. 22
1Section 22. 59.40 (2) (e) of the statutes is amended to read:
SB327,17,52 59.40 (2) (e) Keep a judgment and lien docket of all money judgments of the
3court, transcripts from judgment and lien dockets of other Wisconsin courts and of
4federal courts, warrants for unemployment compensation insurance and warrants
5for delinquent Wisconsin income or franchise taxes.
SB327, s. 23 6Section 23. 59.57 (2) (b) of the statutes is amended to read:
SB327,18,117 59.57 (2) (b) Findings. It is found and declared that industries located in this
8state have been induced to move their operations in whole or in part to, or to expand
9their operations in, other states to the detriment of state, county and municipal
10revenue arising through the loss or reduction of income and franchise taxes, real
11estate and other local taxes, and thereby causing an increase in unemployment; that
12such conditions now exist in certain areas of the state and may well arise in other
13areas; that economic insecurity due to unemployment is a serious menace to the
14general welfare of not only the people of the affected areas but of the people of the
15entire state; that such unemployment results in obligations to grant public
16assistance and in the payment of unemployment compensation insurance; that the
17absence of new economic opportunities has caused workers and their families to
18migrate elsewhere to find work and establish homes, which has resulted in a
19reduction of the tax base of counties, cities and other local governmental jurisdictions
20impairing their financial ability to support education and other local governmental
21services; that security against unemployment and the preservation and
22enhancement of the tax base can best be provided by the promotion, attraction,
23stimulation, rehabilitation and revitalization of commerce, industry and
24manufacturing; that there is a need to stimulate a larger flow of private investment
25funds from banks, investment houses, insurers and other financial institutions; that

1means are necessary under which counties so desiring may create instrumentalities
2to promote industrial development and such purpose requires and deserves support
3from counties as a means of preserving the tax base and preventing unemployment.
4It is therefore declared to be the policy of this state to promote the right to gainful
5employment, business opportunities and general welfare of the inhabitants thereof
6and to preserve and enhance the tax base in counties and municipalities by the
7creation of bodies, corporate and politic, which shall exist and operate for the purpose
8of fulfilling the aims of this subsection and such purposes are hereby declared to be
9public purposes for which public money may be spent and the necessity in the public
10interest for the provisions herein enacted is declared a matter of legislative
11determination.
SB327, s. 24 12Section 24. 66.30 (6) (c) 1. of the statutes is amended to read:
SB327,18,1913 66.30 (6) (c) 1. Provide for acquisition, construction, operation and
14administration of a facility, and establish the functions, projects and services to be
15provided in the facility, including, without limitation because of enumeration,
16proration of all expenses involved, operational and fiscal management including
17deposit and disbursement of funds appropriated, designation of the municipal
18employer for purposes of compliance with s. 111.70, teacher retirement, worker's
19compensation and unemployment compensation insurance.
SB327, s. 25 20Section 25. 66.30 (6) (h) of the statutes is amended to read:
SB327,19,221 66.30 (6) (h) School district boards entering into a contract under this
22subsection shall designate for each employe providing services under the contract
23either a school district entering into the contract or a cooperative educational service
24agency under ch. 116 as the employer for purposes of compliance with s. 111.70,

1teacher's retirement, worker's compensation and unemployment compensation
2insurance.
SB327, s. 26 3Section 26. 66.521 (1) (a) of the statutes is amended to read:
SB327,20,54 66.521 (1) (a) It is found and declared that industries located in this state have
5been induced to move their operations in whole or in part to, or to expand their
6operations in, other states to the detriment of state, county and municipal revenue
7raising through the loss or reduction of income and franchise taxes, real estate and
8other local taxes, and thereby causing an increase in unemployment; that such
9conditions now exist in certain areas of the state and may well arise in other areas;
10that economic insecurity due to unemployment is a serious menace to the general
11welfare of not only the people of the affected areas but of the people of the entire state;
12that unemployment results in obligations to grant public assistance and in the
13payment of unemployment compensation insurance; that the absence of new
14economic opportunities has caused workers and their families to migrate elsewhere
15to find work and establish homes, which has resulted in a reduction of the tax base
16of counties, cities and other local governmental jurisdictions impairing their
17financial ability to support education and other local governmental services; that
18security against unemployment and the preservation and enhancement of the tax
19base can best be provided by the promotion, attraction, stimulation, rehabilitation
20and revitalization of commerce, industry and manufacturing; that there is a need to
21stimulate a larger flow of private investment funds from banks, investment houses,
22insurance companies and other financial institutions. It is therefore declared to be
23the policy of this state to promote the right to gainful employment, business
24opportunities and general welfare of the inhabitants thereof and to preserve and
25enhance the tax base by authorizing municipalities to acquire industrial buildings

1and to finance such acquisition through the issuance of revenue bonds for the
2purpose of fulfilling the aims of this section and such purposes are hereby declared
3to be public purposes for which public money may be spent and the necessity in the
4public interest for the provisions herein enacted is declared a matter of legislative
5determination.
SB327, s. 27 6Section 27. 71.05 (6) (a) 12. of the statutes is amended to read:
SB327,21,107 71.05 (6) (a) 12. All alimony deducted for federal income tax purposes and paid
8while the individual paying the alimony was a nonresident of this state; all penalties
9for early withdrawals from time savings accounts and deposits deducted for federal
10income tax purposes and paid while the individual charged with the penalty was a
11nonresident of this state; all repayments of supplemental unemployment
12compensation benefits benefit plan payments deducted for federal income tax
13purposes and made while the individual making the repayment was a nonresident
14of this state; all reforestation expenses related to property not in this state, deducted
15for federal income tax purposes and paid while the individual paying the expense
16was not a resident of this state; all contributions to individual retirement accounts,
17simplified employe pension plans and self-employment retirement plans and all
18deductible employe contributions, deducted for federal income tax purposes and in
19excess of that amount multiplied by a fraction the numerator of which is the
20individual's wages and net earnings from a trade or business taxable by this state
21and the denominator of which is the individual's total wages and net earnings from
22a trade or business; the contributions to a Keogh plan deducted for federal income
23tax purposes and in excess of that amount multiplied by a fraction the numerator of
24which is the individual's net earnings from a trade or business, taxable by this state,
25and the denominator of which is the individual's total net earnings from a trade or

1business; the amount of health insurance costs of self-employed individuals
2deducted under section 162 (L) of the internal revenue code for federal income tax
3purposes and in excess of that amount multiplied by a fraction the numerator of
4which is the individual's net earnings from a trade or business, taxable by this state,
5and the denominator of which is the individual's total net earnings from a trade or
6business; and the amount of self-employment taxes deducted under section 164 (f)
7of the internal revenue code for federal income tax purposes and in excess of that
8amount multiplied by a fraction the numerator of which is the individual's net
9earnings from a trade or business, taxable by this state, and the denominator of
10which is the individual's total net earnings from a trade or a business.
SB327, s. 28 11Section 28. 71.52 (6) of the statutes, as affected by 1997 Wisconsin Act 27, is
12amended to read:
SB327,23,213 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
14following amounts, to the extent not included in Wisconsin adjusted gross income:
15maintenance payments (except foster care maintenance and supplementary
16payments excludable under section 131 of the internal revenue code), support money,
17cash public assistance (not including credit granted under this subchapter and
18amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross
19amount of any pension or annuity (including railroad retirement benefits, all
20payments received under the federal social security act and veterans disability
21pensions), nontaxable interest received from the federal government or any of its
22instrumentalities, nontaxable interest received on state or municipal bonds,
23worker's compensation, unemployment compensation insurance, the gross amount
24of "loss of time" insurance, compensation and other cash benefits received from the
25United States for past or present service in the armed forces, scholarship and

1fellowship gifts or income, capital gains, gain on the sale of a personal residence
2excluded under section 121 of the internal revenue code, dividends, income of a
3nonresident or part-year resident who is married to a full-year resident, housing
4allowances provided to members of the clergy, the amount by which a resident
5manager's rent is reduced, nontaxable income of an American Indian, nontaxable
6income from sources outside this state and nontaxable deferred compensation.
7Intangible drilling costs, depletion allowances and depreciation, including first-year
8depreciation allowances under section 179 of the internal revenue code,
9amortization, contributions to individual retirement accounts under section 219 of
10the internal revenue code, contributions to Keogh plans, net operating loss
11carry-forwards and capital loss carry-forwards deducted in determining Wisconsin
12adjusted gross income shall be added to "income". "Income" does not include gifts
13from natural persons, cash reimbursement payments made under title XX of the
14federal social security act, surplus food or other relief in kind supplied by a
15governmental agency, the gain on the sale of a personal residence deferred under
16section 1034 of the internal revenue code or nonrecognized gain from involuntary
17conversions under section 1033 of the internal revenue code. Amounts not included
18in adjusted gross income but added to "income" under this subsection in a previous
19year and repaid may be subtracted from income for the year during which they are
20repaid. Scholarship and fellowship gifts or income that are included in Wisconsin
21adjusted gross income and that were added to household income for purposes of
22determining the credit under this subchapter in a previous year may be subtracted
23from income for the current year in determining the credit under this subchapter.
24A marital property agreement or unilateral statement under ch. 766 has no effect in

1computing "income" for a person whose homestead is not the same as the homestead
2of that person's spouse.
SB327, s. 29 3Section 29. 71.67 (7) (title) of the statutes is amended to read:
SB327,23,44 71.67 (7) (title) Withholding from unemployment compensation insurance.
SB327, s. 30 5Section 30. 71.67 (7) (a) of the statutes, as affected by 1997 Wisconsin Act 3,
6is amended to read:
SB327,23,127 71.67 (7) (a) The department of workforce development may, in accordance
8with s. 108.135, deduct and withhold from any unemployment compensation
9insurance payment, on a form prepared by the department of workforce
10development, a portion of the payment as Wisconsin income tax. The department of
11workforce development shall deposit the amounts withheld, on a monthly basis, as
12provided in s. 108.135 (6).
SB327, s. 31 13Section 31. 71.67 (7) (b) 2. of the statutes is amended to read:
SB327,23,1514 71.67 (7) (b) 2. The gross amount of unemployment compensation insurance
15that is subject to withholding under par. (a).
SB327, s. 32 16Section 32 . 71.80 (16) (a) of the statutes is amended to read:
SB327,24,1517 71.80 (16) (a) All nonresident persons, whether incorporated or not, engaging
18in construction contracting in this state as contractor or subcontractor and not
19otherwise regularly engaged in business in this state, shall file a surety bond with
20the department, payable to the department of revenue, to guarantee the payment of
21income or franchise taxes, required unemployment compensation insurance
22contributions, sales and use taxes and income taxes withheld from wages of
23employes, together with any penalties and interest thereon. The department shall
24approve the form and contents of such bond. The amount of the bond shall be 3% of
25the contract or subcontract price on all contracts of $50,000 or more or 3% of

1contractor's or subcontractor's estimated cost-and-profit under a cost-plus contract
2of $50,000 or more. When the aggregate of 2 or more contracts in one calendar year
3is $50,000 or more the amount of the bond or bonds shall be 3% of the aggregate
4amount of such contracts. Such surety bond must be filed within 60 days after
5construction is begun in this state by any such contractor or subcontractor on any
6contract the price of which is $50,000 or more (or the estimated cost-and-profit of
7which is $50,000 or more), or within 60 days after construction is begun in this state
8on any contract for less than $50,000, when the amount of such contract, when
9aggregated with any other contracts, construction on which was begun in this state
10in the same calendar year, equals or exceeds $50,000. If the department concludes
11that no bond is necessary to protect the tax revenues of the state, including
12contributions under ch. 108, the requirements under this subsection may be waived
13by the secretary of revenue or the secretary's designated departmental
14representative. The bond shall remain in force until the liability thereunder is
15released by the secretary or the secretary's designated departmental representative.
SB327, s. 33 16Section 33 . 71.80 (16) (a) of the statutes, as affected by 1997 Wisconsin Act 27,
17is amended to read:
SB327,25,1618 71.80 (16) (a) All nonresident persons, whether incorporated or not, engaging
19in construction contracting in this state as contractor or subcontractor and not
20otherwise regularly engaged in business in this state, shall file a surety bond with
21the department, payable to the department, to guarantee the payment of income or
22franchise taxes, required unemployment compensation insurance contributions,
23sales and use taxes and income taxes withheld from wages of employes, together with
24any penalties and interest thereon. The department shall approve the form and
25contents of such bond. The amount of the bond shall be 3% of the contract or

1subcontract price on all contracts of $50,000 or more or 3% of contractor's or
2subcontractor's estimated cost-and-profit under a cost-plus contract of $50,000 or
3more. When the aggregate of 2 or more contracts in one calendar year is $50,000 or
4more the amount of the bond or bonds shall be 3% of the aggregate amount of such
5contracts. Such surety bond must be filed within 60 days after construction is begun
6in this state by any such contractor or subcontractor on any contract the price of
7which is $50,000 or more (or the estimated cost-and-profit of which is $50,000 or
8more), or within 60 days after construction is begun in this state on any contract for
9less than $50,000, when the amount of such contract, when aggregated with any
10other contracts, construction on which was begun in this state in the same calendar
11year, equals or exceeds $50,000. If the department concludes that no bond is
12necessary to protect the tax revenues of the state, including contributions under ch.
13108, the requirements under this subsection may be waived by the secretary of
14revenue or the secretary's designated departmental representative. The bond shall
15remain in force until the liability thereunder is released by the secretary or the
16secretary's designated departmental representative.
SB327, s. 34 17Section 34. 71.80 (16) (b) of the statutes is amended to read:
SB327,26,1018 71.80 (16) (b) A construction contractor required to file a surety bond under par.
19(a) may, in lieu of such requirement, but subject to approval by the department,
20deposit with the state treasurer an amount of cash equal to the face of the bond that
21would otherwise be required. If an offer to deposit is made the department shall issue
22a certificate to the state treasurer authorizing said treasurer to accept payment of
23such moneys and to give his or her receipt therefor. A copy of such certificate shall
24be mailed to the contractor who shall, within the time fixed by the department, pay
25such amount to said treasurer. A copy of the receipt of the state treasurer shall be

1filed with the department. Upon final determination by the department of such
2contractor's liability for state income or franchise taxes, required unemployment
3compensation insurance contributions, sales and use taxes and income taxes
4withheld from wages of employes, interest and penalties, by reason of such contract
5or contracts, the department shall certify to the state treasurer the amount of taxes,
6penalties and interest as finally determined, shall instruct the treasurer as to the
7proper distribution of such amount, and shall state the amount, if any, to be refunded
8to such contractor. The state treasurer shall make the payments directed by such
9certificate within 30 days after receipt thereof. Amounts refunded to the contractor
10shall be without interest.
SB327, s. 35 11Section 35. 101.654 (2) (c) of the statutes is amended to read:
SB327,26,1512 101.654 (2) (c) If the applicant is required to make state unemployment
13compensation insurance contributions under ch. 108 or is required to pay federal
14unemployment compensation taxes under 26 USC 3301 to 3311, that the applicant
15is making those contributions or paying those taxes as required.
SB327, s. 36 16Section 36. 102.28 (7) (b) of the statutes is amended to read:
SB327,27,817 102.28 (7) (b) Each employer exempted by written order of the department
18under sub. (2) shall pay into the fund established by sub. (8) a sum equal to that
19assessed against each of the other such exempt employers upon the issuance of an
20initial order. The order shall provide for a sum sufficient to secure estimated
21payments of the insolvent exempt employer due for the period up to the date of the
22order and for one year following the date of the order and to pay the estimated cost
23of insurance carrier or insurance service organization services under par. (c).
24Payments ordered to be made to the fund shall be paid to the department within 30
25days. If additional moneys are required, further assessments shall be made based

1on orders of the department with assessment prorated on the basis of the gross
2payroll for this state of the exempt employer, reported to the department for the
3previous calendar year for unemployment compensation insurance purposes under
4ch. 108. If the exempt employer is not covered under ch. 108, then the department
5shall determine the comparable gross payroll for the exempt employer. If payment
6of any assessment made under this subsection is not made within 30 days of the order
7of the department, the attorney general may appear on behalf of the state to collect
8the assessment.
SB327, s. 37 9Section 37. 106.11 (2) (a) 1. b. of the statutes is amended to read:
SB327,27,1610 106.11 (2) (a) 1. b. The individual has, or is a member of a family which has,
11received a total family income for the 6-month period prior to application for the
12program involved, excluding unemployment compensation insurance, child support
13payments and welfare payments, which in relation to family size did not exceed the
14higher of the poverty level determined in accordance with criteria established by the
15director of the federal office of management and budget or 70% of the lower living
16standard income level.
SB327, s. 38 17Section 38. 106.21 (9) (d) of the statutes is repealed.
SB327, s. 39 18Section 39. 106.215 (10) (d) of the statutes, as affected by 1997 Wisconsin Act
1927
, is repealed.
SB327, s. 40 20Section 40. Chapter 108 (title) of the statutes is amended to read:
SB327,27,2121 CHAPTER 108
SB327,27,2322 UNEMPLOYMENT insurance and
23 RESERVES ANd compensation
SB327, s. 41 24Section 41. 108.01 (1) of the statutes is amended to read:
SB327,28,17
1108.01 (1) Unemployment in Wisconsin is recognized as an urgent public
2problem, gravely affecting the health, morals and welfare of the people of this state.
3The burdens resulting from irregular employment and reduced annual earnings fall
4directly on the unemployed worker and his or her family. The decreased and
5irregular purchasing power of wage earners in turn vitally affects the livelihood of
6farmers, merchants and manufacturers, results in a decreased demand for their
7products, and thus tends partially to paralyze the economic life of the entire state.
8In good times and in bad times unemployment is a heavy social cost, directly affecting
9many thousands of wage earners. Each employing unit in Wisconsin should pay at
10least a part of this social cost, connected with its own irregular operations, by
11financing compensation benefits for its own unemployed workers. Each employer's
12contribution rate should vary in accordance with its own unemployment costs, as
13shown by experience under this chapter. Whether or not a given employing unit can
14provide steadier work and wages for its own employes, it can reasonably be required
15to build up a limited reserve for unemployment, out of which benefits shall be paid
16to its eligible unemployed workers, as a matter of right, based on their respective
17wages and lengths of service.
SB327, s. 42 18Section 42. 108.02 (4m) (a) of the statutes is amended to read:
SB327,28,2119 108.02 (4m) (a) All payments earnings for wage-earning service made which
20are paid
to an employe during his or her base period as a result of employment for
21an employer;
SB327, s. 43 22Section 43. 108.02 (4m) (g) of the statutes is created to read:
SB327,29,223 108.02 (4m) (g) All salary reduction amounts that are not wages and that
24would have been paid to an employe by an employer as salary during the employe's

1base period but for a salary reduction agreement under a cafeteria plan, within the
2meaning of 26 USC 125.
SB327, s. 44 3Section 44. 108.02 (12) (b) (intro.) of the statutes is amended to read:
SB327,29,84 108.02 (12) (b) (intro.) Paragraph (a) does not apply to an individual
5performing services for an employing unit other than a government unit or nonprofit
6organization
in a capacity other than as a contract operator with a carrier or as a
7skidding operator or piece cutter with a forest products manufacturer or a logging
8contractor
logger or trucker, if the employing unit satisfies the department that:
SB327, s. 45 9Section 45. 108.02 (12) (c) (intro.) of the statutes is amended to read:
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