SB327: Bill Text

Set aside, amendment, reopening, reversal or modification of certain determinations and decisions

Currently, DWD may set aside or amend an initial determination concerning the eligibility of a claimant to receive unemployment compensation benefits within one year of the determination to correct a mistake, unless a party has filed a timely request for a hearing as to the determination. Unless a party has filed a timely petition for review of a decision, an appeal tribunal (hearing examiner) may similarly reopen any decision concerning benefit eligibility or the status of an employer within one year of the decision if the tribunal determines that false testimony was given or false evidence was offered. The labor and industry review commission (LIRC) may set aside any final determination of DWD or any decision of an appeal tribunal or LIRC within one year of the determination or decision upon the grounds of mistake or newly discovered evidence. Currently, DWD is not authorized to set aside any decision of an appeal tribunal and is not authorized to reverse, modify or set aside any decision of LIRC. This bill extends from one year to 2 years the period during which determinations and decisions may be set aside, amended or reopened under the circumstances currently provided. The bill also permits DWD to set aside or amend an initial determination at any time if DWD determines that the benefits paid or payable to a claimant have been affected by wages earned by the claimant which have not been paid, and DWD is provided with notice from the appropriate state or federal court or agency that a wage claim for those wages will not be paid in whole or in part, unless a party has filed a timely request for a hearing concerning that determination. Similarly, the bill permits an appeal tribunal to set aside a decision of the appeal tribunal at any time (unless a party has filed a timely petition for review of the decision with LIRC), and permits LIRC to set aside a final determination of DWD or a decision of an appeal tribunal or LIRC at any time (regardless of whether an appeal or petition for review has been filed) under similar circumstances if the appeal tribunal or LIRC is provided with similar notice of an unpaid wage claim. In addition, the bill permits DWD to set aside or amend any decision of an appeal tribunal adverse to a claimant that has been issued within the 4-year period preceding the day the bill becomes law, and permits DWD to reverse, modify or set aside any decision of LIRC adverse to a claimant that has been issued within that period, if DWD finds that the benefits paid or payable to the claimant have been affected by wages earned by the claimant which have not been paid, and DWD is provided with notice from the appropriate state or federal court or agency that a wage claim for those wages will not be paid in whole or in part, unless a timely petition for review by LIRC has been filed or a timely action for judicial review has been commenced.

Coverage of Wisconsin service corps and Wisconsin conservation corps employes

Under current state laws governing the Wisconsin service corps (WSC) and the Wisconsin conservation corps (WCC), no corps enrollee in the WSC and no corps member or assistant crew leader in the WCC is eligible for unemployment compensation benefits by virtue of his or her employment in the corps. Conflicting provisions of the same laws provide that to the extent permitted by federal law, the WSC and WCC programs shall be considered work-relief and work-training programs for the purpose of determining eligibility for unemployment compensation benefits.

Under current state law governing the unemployment compensation program, no corps member or assistant crew leader in the WCC is eligible for unemployment compensation benefits by virtue of his or her employment in the WCC. In addition, an individual serving in a position receiving work relief or work training as a part of a work-training or work-relief program assisted or funded by a state agency is not eligible for unemployment compensation benefits based on such service except as the agency otherwise elects with the approval of DWD. This provision is based on federal law, which generally requires states participating in the federal-state unemployment compensation program to provide benefits for employes of state agencies except, if a state elects, for individuals performing service as a part of an unemployment work-relief or work-training program assisted or funded by a state agency if the individuals receive work relief or work training under the program [26 USC 3309 (b) (5)]. "Work relief" and "work training" are interpreted by DWD in accordance with standards imposed by the U.S. department of labor.

This bill deletes the provisions of current state laws governing the WSC and WCC programs. In addition, the bill deletes the provision of current state law governing the unemployment compensation program specifying that a corps member or assistant crew leader in the WCC is ineligible to receive unemployment compensation benefits by virtue of his or her employment in the WCC, but retains the disqualification for individuals receiving state-assisted work relief or work training.

Other

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:

SB327, s. 1 Section 1. 6.10 (9) of the statutes is amended to read:

SB327,8,4 6.10 (9) No person loses the right to vote at the person's place of residence while receiving public assistance or unemployment compensation insurance even if the legal settlement for assistance is elsewhere.

SB327, s. 2 Section 2. 15.227 (3) of the statutes, as affected by 1997 Wisconsin Act 3, is amended to read:

SB327,9,9 15.227 (3) (title) Council on unemployment compensation insurance. There is created in the department of workforce development a council on unemployment compensation insurance appointed by the secretary of workforce development to consist of 5 representatives of employers and 5 representatives of employes appointed to serve for 6-year terms and a permanent classified employe of the department of workforce development who shall serve as nonvoting chairperson. In making appointments to the council, the secretary shall give due consideration to achieving balanced representation of the industrial, commercial, construction, nonprofit and public sectors of the state's economy. One of the employer representatives shall be an owner of a small business or a representative of an association primarily composed of small businesses. In this subsection, "small business" means an independently owned and operated business which is not dominant in its field and which has had less than $2,000,000 in gross annual sales for each of the previous 2 calendar years or has 25 or fewer employes. A member vacates his or her office if the member loses the status upon which his or her appointment is based.

SB327, s. 3 Section 3. 16.48 (1) (a) (intro.) of the statutes is amended to read:

SB327,9,13 16.48 (1) (a) (intro.) A statement of unemployment compensation insurance financial outlook, which shall contain the following, together with the secretary's recommendations and an explanation for such recommendations:

SB327, s. 4 Section 4. 16.48 (1) (a) 1., 2. and 6. and (b) of the statutes are amended to read:

SB327,9,18 16.48 (1) (a) 1. Projections of unemployment compensation insurance operations under current law through at least the 2nd year following the close of the biennium, including benefit payments, tax collections, borrowing or debt repayments and amounts of interest charges, if any.

SB327,9,20 2. Specific proposed changes in the laws relating to unemployment compensation insurance financing, benefits and administration.

SB327,9,22 6. If unemployment compensation insurance program debt is projected at the end of the forecast period, the reasons why it is not proposed to liquidate the debt.

SB327,9,24 (b) A report summarizing the deliberations of the council on unemployment compensation insurance and the position of the council, if any, concerning each proposed change in the unemployment compensation insurance laws submitted under par. (a).

SB327, s. 5 Section 5. 16.48 (2) and (3) of the statutes, as affected by 1997 Wisconsin Act 3, are amended to read:

SB327,10,12 16.48 (2) Upon receipt of the statement and report under sub. (1), the governor may convene a special committee consisting of the secretary of workforce development and the legislative leaders specified in sub. (1) to review the statement and report. Upon request of 2 or more of the legislative leaders specified in sub. (1), the governor shall convene such a committee. The committee shall attempt to reach a consensus concerning proposed changes to the unemployment compensation insurance laws and shall submit its recommendations to the governor and legislature concurrently with the statement furnished under sub. (3).

SB327,10,18 (3) On or about February 15 of each odd-numbered year, the secretary of workforce development, under the direction of the governor, shall submit to each member of the legislature an updated statement of unemployment compensation insurance financial outlook which shall contain the information specified in sub. (1) (a), together with the governor's recommendations and an explanation for such recommendations, and a copy of the report required under sub. (1) (b).

SB327, s. 6 Section 6. 19.85 (1) (ee) of the statutes is amended to read:

SB327,10,22 19.85 (1) (ee) Deliberating by the council on unemployment compensation insurance in a meeting at which all employer members of the council or all employe members of the council are excluded.

SB327, s. 7 Section 7. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB327, s. 8 Section 8 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 612, is amended to read:

SB327,11,14 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22 and assessments under s. 108.19 (1m), all moneys not appropriated under pars. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20, and for the payment of career counseling center grants under s. 106.14.

SB327, s. 9 Section 9 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 612m, is amended to read:

SB327,12,14 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20, and for payment of career counseling center grants under s. 106.14.

SB327, s. 10 Section 10 . 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Act 27, section 613, is amended to read:

SB327,13,3 20.445 (1) (gd) Unemployment interest and penalty payments. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and 108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all moneys not appropriated under par. (ge) and, (gf) and (gg) and all moneys transferred to this appropriation account from the appropriation account under par. (gh) for the payment of benefits specified in s. 108.07 (5) and 1987 Wisconsin Act 38, section 132 (1) (c), for the payment of interest to employers under s. 108.17 (3m) and, for the payment of interest due on advances from the federal unemployment account under title XII of the social security act to the unemployment reserve fund, and for payments made to the unemployment reserve fund to obtain a lower interest rate or deferral of interest payments on these advances, except as otherwise provided in s. 108.20.

SB327, s. 11 Section 11. 20.445 (1) (gf) of the statutes is amended to read:

SB327,13,12 20.445 (1) (gf) Employment security administration. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22, the amounts in the schedule for the administration of employment service programs and unemployment compensation insurance programs under ch. 108 and s. 106.09 and federal or state unemployment compensation insurance programs authorized by the governor under s. 16.54; and for payments to satisfy any federal audit exception concerning a payment from the unemployment reserve fund or any federal aid disallowance involving the unemployment compensation insurance program.

SB327, s. 12 Section 12. 20.445 (1) (gg) of the statutes is created to read:

SB327,13,17 20.445 (1) (gg) Unemployment information technology systems; interest and penalties. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (13) (c) and 108.22, as a continuing appropriation, the amounts in the schedule for the purpose specified in s. 108.19 (1e).

SB327, s. 13 Section 13. 20.445 (1) (gh) of the statutes is created to read:

SB327,13,23 20.445 (1) (gh) Unemployment information technology systems; assessments. All moneys received from assessments levied under s. 108.19 (1e) and 1997 Wisconsin Act .... (this act), section 164 (2), for the purpose specified in s. 108.19 (1e). The treasurer of the unemployment reserve fund may transfer moneys from this appropriation account to the appropriation account under par. (gd).

SB327, s. 14 Section 14. 20.445 (1) (n) of the statutes is amended to read:

SB327,14,11 20.445 (1) (n) Unemployment administration; federal moneys. All federal moneys received for the employment service under s. 106.09 (4) to (6) or, for the administration of unemployment compensation under ch. 108, and any federal moneys paid to the department insurance or for the performance of its the department's functions under ch. 108, and for its conduct of public employment offices consistent with s. 106.09 (4) to (6), and for its other efforts to regularize employment;, to pay the compensation and expenses of appeal tribunals and of councils; and to pay allowances stimulating education during unemployment, to be used for such purposes, and to transfer to par. (nb) an amount determined by the treasurer of the unemployment reserve fund not exceeding the lesser of the amount specified in s. 108.161 (4) (d) or the amounts in the schedule under par. (nb).

SB327, s. 15 Section 15. 20.445 (1) (nb) of the statutes is created to read:

SB327,14,24 20.445 (1) (nb) Unemployment information technology systems; federal moneys. The amounts in the schedule, as authorized by the governor for this purpose under s. 16.54, for the purpose specified in s. 108.19 (1e). All moneys transferred from par. (n) for this purpose shall be credited to this appropriation account. Notwithstanding s. 20.001 (3) (a), the treasurer of the unemployment reserve fund shall transfer any unencumbered balance in this appropriation account that is not needed or available to carry out the purpose of this appropriation to the appropriation account under par. (n). No moneys may be expended from this appropriation unless the treasurer of the unemployment reserve fund determines that such expenditure is currently needed for the purpose specified in s. 108.19 (1e). No moneys may be encumbered from this appropriation account after the beginning of the 3rd 12-month period beginning after the effective date of this paragraph .... [revisor inserts date].

SB327, s. 16 Section 16. 40.02 (22) (b) 3. of the statutes is amended to read:

SB327,15,1 40.02 (22) (b) 3. Unemployment compensation insurance benefits.

SB327, s. 17 Section 17. 40.65 (5) (b) 2. of the statutes is amended to read:

SB327,15,4 40.65 (5) (b) 2. Any unemployment compensation insurance benefit payable to the participant because of his or her work record.

SB327, s. 18 Section 18. 45.71 (9) (a) of the statutes is amended to read:

SB327,15,9 45.71 (9) (a) Part-time or overtime pay, unemployment compensation insurance and income of the veteran's spouse are considered income only if the department or authorized lender deems such sources of income to be regular and dependable.

SB327, s. 19 Section 19. 46.27 (5) (i) of the statutes is amended to read:

SB327,16,5 46.27 (5) (i) In the instances in which an individual who is provided long-term community support services under par. (b) for which the individual receives direct funding, serve directly as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for that individual for the purposes of performing the responsibilities and protecting the interests of the individual under the unemployment compensation insurance law. The county department or aging unit may elect to act as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for an individual who is provided long-term support services under s. 46.275, 46.277, 46.278, 46.495, 51.42 or 51.437. The fiscal agent under this paragraph is responsible for remitting any federal unemployment compensation taxes or state unemployment compensation insurance contributions owed by the individual, including any interest and penalties which are owed by the individual; for serving as the representative of the individual in any investigation, meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (26 USC 3301 to 3311) in which the individual is a party; and for receiving, reviewing, completing and returning all forms, reports and other documents required under ch. 108 or the federal unemployment tax act on behalf of the individual. An individual may make an informed, knowing and voluntary election to waive the right to a fiscal agent. The waiver may be as to all or any portion of the fiscal agent's responsibilities. The waiver may be rescinded in whole or in part at any time.

SB327, s. 20 Section 20. 47.035 (1) of the statutes is amended to read:

SB327,16,22 47.035 (1) Except as authorized in sub. (2) if an individual receives direct funding for personal assistance services that are provided to the individual under s. 47.02 (4) (c), and the services are provided through a county department of human services or social services or an aging unit, the county department or aging unit through which the services are provided shall serve directly as a fiscal agent or contract with a fiscal intermediary to serve as a fiscal agent for that individual for the purposes of performing the responsibilities and protecting the interests of the individual under the unemployment compensation insurance law. The fiscal agent under this subsection is responsible for remitting any federal unemployment compensation taxes or state unemployment compensation insurance contributions owed by the individual, including any interest and penalties which are owed by the individual; for serving as the representative of the individual in any investigation, meeting, hearing or appeal involving ch. 108 or the federal unemployment tax act (26 USC 3301 to 3311) in which the individual is a party; and for receiving, reviewing, completing and returning all forms, reports and other documents required under ch. 108 or the federal unemployment tax act on behalf of the individual.

SB327, s. 21 Section 21. 49.19 (4) (dm) 4. of the statutes is amended to read:

SB327,16,25 49.19 (4) (dm) 4. Qualifies for unemployment compensation insurance but refuses to apply for or accept unemployment compensation insurance; or

SB327, s. 22 Section 22. 59.40 (2) (e) of the statutes is amended to read:

SB327,17,5 59.40 (2) (e) Keep a judgment and lien docket of all money judgments of the court, transcripts from judgment and lien dockets of other Wisconsin courts and of federal courts, warrants for unemployment compensation insurance and warrants for delinquent Wisconsin income or franchise taxes.

SB327, s. 23 Section 23. 59.57 (2) (b) of the statutes is amended to read:

SB327,18,11 59.57 (2) (b) Findings. It is found and declared that industries located in this state have been induced to move their operations in whole or in part to, or to expand their operations in, other states to the detriment of state, county and municipal revenue arising through the loss or reduction of income and franchise taxes, real estate and other local taxes, and thereby causing an increase in unemployment; that such conditions now exist in certain areas of the state and may well arise in other areas; that economic insecurity due to unemployment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state; that such unemployment results in obligations to grant public assistance and in the payment of unemployment compensation insurance; that the absence of new economic opportunities has caused workers and their families to migrate elsewhere to find work and establish homes, which has resulted in a reduction of the tax base of counties, cities and other local governmental jurisdictions impairing their financial ability to support education and other local governmental services; that security against unemployment and the preservation and enhancement of the tax base can best be provided by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing; that there is a need to stimulate a larger flow of private investment funds from banks, investment houses, insurers and other financial institutions; that means are necessary under which counties so desiring may create instrumentalities to promote industrial development and such purpose requires and deserves support from counties as a means of preserving the tax base and preventing unemployment. It is therefore declared to be the policy of this state to promote the right to gainful employment, business opportunities and general welfare of the inhabitants thereof and to preserve and enhance the tax base in counties and municipalities by the creation of bodies, corporate and politic, which shall exist and operate for the purpose of fulfilling the aims of this subsection and such purposes are hereby declared to be public purposes for which public money may be spent and the necessity in the public interest for the provisions herein enacted is declared a matter of legislative determination.

SB327, s. 24 Section 24. 66.30 (6) (c) 1. of the statutes is amended to read:

SB327,18,19 66.30 (6) (c) 1. Provide for acquisition, construction, operation and administration of a facility, and establish the functions, projects and services to be provided in the facility, including, without limitation because of enumeration, proration of all expenses involved, operational and fiscal management including deposit and disbursement of funds appropriated, designation of the municipal employer for purposes of compliance with s. 111.70, teacher retirement, worker's compensation and unemployment compensation insurance.

SB327, s. 25 Section 25. 66.30 (6) (h) of the statutes is amended to read:

SB327,19,2 66.30 (6) (h) School district boards entering into a contract under this subsection shall designate for each employe providing services under the contract either a school district entering into the contract or a cooperative educational service agency under ch. 116 as the employer for purposes of compliance with s. 111.70, teacher's retirement, worker's compensation and unemployment compensation insurance.

SB327, s. 26 Section 26. 66.521 (1) (a) of the statutes is amended to read:

SB327,20,5 66.521 (1) (a) It is found and declared that industries located in this state have been induced to move their operations in whole or in part to, or to expand their operations in, other states to the detriment of state, county and municipal revenue raising through the loss or reduction of income and franchise taxes, real estate and other local taxes, and thereby causing an increase in unemployment; that such conditions now exist in certain areas of the state and may well arise in other areas; that economic insecurity due to unemployment is a serious menace to the general welfare of not only the people of the affected areas but of the people of the entire state; that unemployment results in obligations to grant public assistance and in the payment of unemployment compensation insurance; that the absence of new economic opportunities has caused workers and their families to migrate elsewhere to find work and establish homes, which has resulted in a reduction of the tax base of counties, cities and other local governmental jurisdictions impairing their financial ability to support education and other local governmental services; that security against unemployment and the preservation and enhancement of the tax base can best be provided by the promotion, attraction, stimulation, rehabilitation and revitalization of commerce, industry and manufacturing; that there is a need to stimulate a larger flow of private investment funds from banks, investment houses, insurance companies and other financial institutions. It is therefore declared to be the policy of this state to promote the right to gainful employment, business opportunities and general welfare of the inhabitants thereof and to preserve and enhance the tax base by authorizing municipalities to acquire industrial buildings and to finance such acquisition through the issuance of revenue bonds for the purpose of fulfilling the aims of this section and such purposes are hereby declared to be public purposes for which public money may be spent and the necessity in the public interest for the provisions herein enacted is declared a matter of legislative determination.

SB327, s. 27 Section 27. 71.05 (6) (a) 12. of the statutes is amended to read:

SB327,21,10 71.05 (6) (a) 12. All alimony deducted for federal income tax purposes and paid while the individual paying the alimony was a nonresident of this state; all penalties for early withdrawals from time savings accounts and deposits deducted for federal income tax purposes and paid while the individual charged with the penalty was a nonresident of this state; all repayments of supplemental unemployment compensation benefits benefit plan payments deducted for federal income tax purposes and made while the individual making the repayment was a nonresident of this state; all reforestation expenses related to property not in this state, deducted for federal income tax purposes and paid while the individual paying the expense was not a resident of this state; all contributions to individual retirement accounts, simplified employe pension plans and self-employment retirement plans and all deductible employe contributions, deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's wages and net earnings from a trade or business taxable by this state and the denominator of which is the individual's total wages and net earnings from a trade or business; the contributions to a Keogh plan deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; the amount of health insurance costs of self-employed individuals deducted under section 162 (L) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or business; and the amount of self-employment taxes deducted under section 164 (f) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual's net earnings from a trade or business, taxable by this state, and the denominator of which is the individual's total net earnings from a trade or a business.

SB327, s. 28 Section 28. 71.52 (6) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB327,23,2 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment compensation insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB327, s. 29 Section 29. 71.67 (7) (title) of the statutes is amended to read:

SB327,23,4 71.67 (7) (title) Withholding from unemployment compensation insurance.

SB327, s. 30 Section 30. 71.67 (7) (a) of the statutes, as affected by 1997 Wisconsin Act 3, is amended to read:

SB327,23,12 71.67 (7) (a) The department of workforce development may, in accordance with s. 108.135, deduct and withhold from any unemployment compensation insurance payment, on a form prepared by the department of workforce development, a portion of the payment as Wisconsin income tax. The department of workforce development shall deposit the amounts withheld, on a monthly basis, as provided in s. 108.135 (6).

SB327, s. 31 Section 31. 71.67 (7) (b) 2. of the statutes is amended to read:

SB327,23,15 71.67 (7) (b) 2. The gross amount of unemployment compensation insurance that is subject to withholding under par. (a).

SB327, s. 32 Section 32 . 71.80 (16) (a) of the statutes is amended to read:

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

SB327, s. 33 Section 33 . 71.80 (16) (a) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

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

SB327, s. 34 Section 34. 71.80 (16) (b) of the statutes is amended to read:

SB327,26,10 71.80 (16) (b) A construction contractor required to file a surety bond under par. (a) may, in lieu of such requirement, but subject to approval by the department, deposit with the state treasurer an amount of cash equal to the face of the bond that would otherwise be required. If an offer to deposit is made the department shall issue a certificate to the state treasurer authorizing said treasurer to accept payment of such moneys and to give his or her receipt therefor. A copy of such certificate shall be mailed to the contractor who shall, within the time fixed by the department, pay such amount to said treasurer. A copy of the receipt of the state treasurer shall be filed with the department. Upon final determination by the department of such contractor's liability for state income or franchise taxes, required unemployment compensation insurance contributions, sales and use taxes and income taxes withheld from wages of employes, interest and penalties, by reason of such contract or contracts, the department shall certify to the state treasurer the amount of taxes, penalties and interest as finally determined, shall instruct the treasurer as to the proper distribution of such amount, and shall state the amount, if any, to be refunded to such contractor. The state treasurer shall make the payments directed by such certificate within 30 days after receipt thereof. Amounts refunded to the contractor shall be without interest.

SB327, s. 35 Section 35. 101.654 (2) (c) of the statutes is amended to read:

SB327,26,15 101.654 (2) (c) If the applicant is required to make state unemployment compensation insurance contributions under ch. 108 or is required to pay federal unemployment compensation taxes under 26 USC 3301 to 3311, that the applicant is making those contributions or paying those taxes as required.

SB327, s. 36 Section 36. 102.28 (7) (b) of the statutes is amended to read:

SB327,27,8 102.28 (7) (b) Each employer exempted by written order of the department under sub. (2) shall pay into the fund established by sub. (8) a sum equal to that assessed against each of the other such exempt employers upon the issuance of an initial order. The order shall provide for a sum sufficient to secure estimated payments of the insolvent exempt employer due for the period up to the date of the order and for one year following the date of the order and to pay the estimated cost of insurance carrier or insurance service organization services under par. (c). Payments ordered to be made to the fund shall be paid to the department within 30 days. If additional moneys are required, further assessments shall be made based on orders of the department with assessment prorated on the basis of the gross payroll for this state of the exempt employer, reported to the department for the previous calendar year for unemployment compensation insurance purposes under ch. 108. If the exempt employer is not covered under ch. 108, then the department shall determine the comparable gross payroll for the exempt employer. If payment of any assessment made under this subsection is not made within 30 days of the order of the department, the attorney general may appear on behalf of the state to collect the assessment.

SB327, s. 37 Section 37. 106.11 (2) (a) 1. b. of the statutes is amended to read:

SB327,27,16 106.11 (2) (a) 1. b. The individual has, or is a member of a family which has, received a total family income for the 6-month period prior to application for the program involved, excluding unemployment compensation insurance, child support payments and welfare payments, which in relation to family size did not exceed the higher of the poverty level determined in accordance with criteria established by the director of the federal office of management and budget or 70% of the lower living standard income level.

SB327, s. 38 Section 38. 106.21 (9) (d) of the statutes is repealed.

SB327, s. 39 Section 39. 106.215 (10) (d) of the statutes, as affected by 1997 Wisconsin Act 27, is repealed.