SB199: Bill Text

Currently, an eligible custodial parent of a child who is 12 weeks old or less may receive a monthly grant of $673 without being required to work. This bill increases the permissible age of the child to one year.

Tax credits

This bill creates an income tax and franchise tax credit for a corporation that constructs and equips a day care center or pays a day care center to care for the children of the corporation's employes during the employes' working hours. Sole proprietorships, corporations and insurers may claim the credit. Partnerships, limited liability companies and tax-option corporations compute the credit but pass it on to the partners, members and shareholders in proportion to their ownership interests.

The credit is an amount equal to 50% of the amount paid by the corporation during a taxable year to construct and equip a day care center that is owned and operated by the corporation or an amount equal to 50% of the amount paid by the corporation during a taxable year to a day care center to care for the children of the corporation's employes during the employes' working hours. A corporation may also claim a credit equal to $50 a month for each child of a corporation's employe enrolled in the corporation's day care center for a taxable year.

If the credit claimed by a corporation exceeds the corporation's tax liability, the state will not issue a refund check, but the corporation may carry forward any remaining credit to the next five taxable years. If a day care center that is constructed and equipped by a corporation ceases its operation within five years from the date that construction of the day care center was completed, the corporation must pay back the credit received in proportion to the period of time that the day care center operated.

Finally, the bill creates an income tax and franchise tax credit for five percent of child care costs, up to a maximum annual credit of $15,000. The expenses that may be counted in calculating the credit are those of acquiring, constructing and rehabilitating child care facilities; operating costs of day care facilities; and amounts paid under a contract for child care services for the claimant's employes.

Under current federal law there is an individual income tax credit for a portion of qualifying child or dependent care expenses that are paid for the purpose of enabling a taxpayer to be gainfully employed. An eligible claimant must maintain a household for a "qualifying individual", which is defined as a dependent under the age of 13, a disabled spouse or another disabled individual who is a dependent of the taxpayer. The federal credit is nonrefundable, meaning that no refund is paid if the amount of the credit exceeds the taxpayer's tax liability. The maximum credit is $720 if the taxpayer has one qualifying individual or $1,440 if the taxpayer has more than one qualifying individual.

This bill creates a nonrefundable individual income tax credit that is equal to 50% of the amount that is claimed by an individual under this federal credit.

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:

SB199, s. 1 Section 1. 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

SB199, s. 2 Section 2. 20.235 (1) (cw) of the statutes is created to read:

SB199,6,6 20.235 (1) (cw) Child care worker loan repayment assistance. Biennially, the amounts in the schedule for the child care worker loan repayment assistance program under s. 39.385.

SB199, s. 3 Section 3. 20.435 (5) (bc) of the statutes is amended to read:

SB199,6,11 20.435 (5) (bc) Health care for low-income families and eligible individuals. As a continuing appropriation, the amounts in the schedule A sum sufficient for the badger care health care program for low-income families and eligible individuals under s. 49.665.

SB199, s. 4 Section 4. 20.435 (5) (jz) of the statutes is amended to read:

SB199,7,4 20.435 (5) (jz) Badger care premiums. All moneys received from payments under s. 49.665 (5) to be used for the badger care health care program for low-income families and eligible individuals under s. 49.466 49.665.

SB199, s. 5 Section 5. 20.435 (5) (o) of the statutes is amended to read:

SB199,7,8 20.435 (5) (o) Federal aid; medical assistance. All federal moneys received for meeting costs of medical assistance administered under ss. s. 49.45 and, to the extent permitted under federal law, s. 49.665.

SB199, s. 6 Section 6. 20.435 (5) (p) of the statutes is amended to read:

SB199,7,14 20.435 (5) (p) Federal aid; health care for low-income families. All federal moneys received for the badger care health care program for low-income families under s. 49.665, to be used for that the purpose of providing health care coverage to low-income families that are eligible under s. 49.665 (4) (a) for the badger care health care program.

SB199, s. 7 Section 7. 20.445 (3) (cm) of the statutes is amended to read:

SB199,7,23 20.445 (3) (cm) Wisconsin works child care. The As a continuing appropriation, the amounts in the schedule for paying child care subsidies under s. 49.155. Before October 1, 1997, moneys appropriated under this paragraph may be used to fund child care costs of individuals who secure unsubsidized employment and lose eligibility for aid to families with dependent children as provided under s. 49.191 (2), for child care and related transportation costs under s. 49.26 (1) (e), for at-risk and low-income child care under s. 49.132, 1995 stats., and for child care costs under ss. 49.191 (1) and 49.193 (8).

SB199, s. 8 Section 8. 20.445 (3) (ct) of the statutes is created to read:

SB199,8,3 20.445 (3) (ct) Local early childhood council grants. As a continuing appropriation, the amounts in the schedule for grants for local early childhood councils under s. 49.135.

SB199, s. 9 Section 9. 39.385 of the statutes is created to read:

SB199,8,7 39.385 Child care worker loan repayment assistance program. (1) There is established, to be administered by the board, a loan repayment assistance program for resident child care workers who meet all of the following requirements:

SB199,8,11 (a) Have graduated on or after May 1, 1999, with a bachelor's degree from an institution of higher education, as defined in s. 39.32 (1) (a), located in this state or a degree under an associate degree program, as defined in s. 38.01 (1), in an area relating to early childhood education.

SB199,8,13 (b) Are currently in loan repayment on any student loan, which loan repayment status is not in default, as determined by the applicable lender.

SB199,8,15 (c) Have been continuously employed on a full-time basis in this state for at least 12 months as a child care worker.

SB199,8,16 (2) The board shall:

SB199,8,24 (a) Reimburse a child care worker for 10% of the outstanding principal amount of any student loans of the child care worker or $1,000, whichever is less, for the 12-month period of eligibility under sub. (1). As a condition of eligibility for loan repayment assistance under this paragraph, the child care worker shall submit to the board, on a form prescribed by the board, a statement certified by the lender of an applicable student loan, within 30 days previous to the filing of the submission, certifying that the loan repayment status of the borrower is not in default and the outstanding principal amount of the applicable student loan.

SB199,9,3 (b) For each succeeding 12-month period of eligibility under sub. (1), reimburse the child care worker as determined under par. (a). No child care worker is eligible for more than 5 loan repayment assistance payments under this section.

SB199,9,5 (c) Make the loan repayment assistance payments under pars. (a) and (b) from the appropriation account under s. 20.235 (1) (cw), subject to the availability of funds.

SB199,9,11 (d) Promulgate rules to implement and administer this section, including rules establishing the criteria and procedures for loan repayment assistance and, after first consulting with the department of health and family services, defining "child care worker" for the purposes of this section. The definition of "child care worker" shall include any child care position specified in rules of the department of health and family services relating to day care and family day care centers for children.

SB199, s. 10 Section 10 . 49.135 of the statutes is created to read:

SB199,9,16 49.135 Local early childhood council grants. (1) Purpose. From the appropriation under s. 20.445 (3) (ct), the department shall provide grants, awarded under sub. (2), to public agencies or private, nonprofit organizations for the establishment or operation, or both, of local early childhood councils.

SB199,9,20 (2) Grant awards; amounts. (a) Grants shall be awarded by a body consisting of 2 representatives of the department of health and family services, 2 representatives of the department of workforce development and 2 representatives of the department of public instruction.

SB199,9,23 (b) A grant may be awarded only to an applicant that agrees to match the grant or to secure a match from local sources, through money or in-kind services, or both, as follows:

SB199,9,25 1. During the first year of the grant, in the amount of at least 25% of the amount received for that year.

SB199,10,2 2. During the 2nd and subsequent years of the grant, in the amount of at least 50% of the amount received for each year.

SB199,10,5 (c) Each grant application shall include proof of the applicant's ability to comply with par. (b). Any in-kind services proposed under par. (b) are subject to the approval of the body awarding grants under par. (a).

SB199,10,17 (3) Grant awards; criteria. In evaluating applications for grants, the body under sub. (2) (a) shall give priority to proposals that involve the planning and participation of multiple individuals and organizations, including child care providers, as defined in s. 49.001 (1), employers, parents, head start agencies designated under 42 USC 9836, child care resource and referral service grant recipients under s. 49.134, school districts, private schools, counties, cities, villages, towns, tribal governments, providers of early childhood education, early childhood family education center grant recipients under s. 48.982 (6), right from the start grant recipients under s. 48.982 (7), the Wisconsin works community steering committee under s. 49.143 (2) (a) and other individuals and organizations that have a demonstrated interest in or knowledge of child care, early childhood education or other services for young children and their families.

SB199,10,21 (4) Use of funds; functions of local early childhood councils. Any amounts granted under this section shall be used for the establishment or operation, or both, of a local early childhood council. A local early childhood council funded under this section shall do all of the following:

SB199,10,23 (a) Designate an individual to serve as the facilitator of the local early childhood council.

SB199,11,2 (b) Conduct an assessment of child care and early childhood education programs and other services for young children and their families that are available in the community and an assessment of the need for those programs and services in the community.

SB199,11,3 (c) Develop a plan to do all of the following:

SB199,11,5 1. Increase the supply and accessibility of high-quality child care and early childhood education programs in the community.

SB199,11,11 2. Foster coordination and communication between providers of child care and early childhood education, employers, the local public schools, parents, the Wisconsin works community steering committee under s. 49.143 (2) (a) and other appropriate individuals and organizations in the community to maximize the accessibility and quality of, and to minimize duplication in, the programs and services that are available in the community for young children and their families.

SB199,11,14 3. Promote and increase public awareness of the characteristics and importance of high-quality child care and early childhood education for young children.

SB199,11,17 (d) Advise the county department under s. 46.215, 46.22 or 46.23 on the development of the county department's proposed budget for the expenditure of funds allocated under s. 49.175 (1) (o) and (p).

SB199,11,22 (5) Membership of local early childhood councils. Membership on a local early childhood council funded under this section shall be open to all persons and organizations in the community with a demonstrated interest in or knowledge of child care, early childhood education or other services for young children and their families and shall include all of the following persons as members:

SB199,11,23 (a) One or more parents of young children.

SB199,11,24 (b) One or more providers of family child care.

SB199,11,25 (c) One or more providers of center-based child care.

SB199,12,1 (d) One elected county official.

SB199,12,2 (e) One or more representatives of each of the following:

SB199,12,3 1. A local employer.

SB199,12,4 2. The local school district.

SB199,12,6 3. The county department receiving child care funds under s. 49.175 (1) (o) or (p) and any entity administering those funds if different from the county department.

SB199,12,7 4. The local health department, as defined in s. 250.01 (4).

SB199,12,9 5. A local agency providing child care resource and referral services funded by a grant under s. 49.134.

SB199,12,11 (6) Rules. The department, in consultation with the department of public instruction, shall promulgate rules to implement this section.

SB199, s. 11 Section 11. 49.136 (7) (a) of the statutes is amended to read:

SB199,12,18 49.136 (7) (a) The department shall establish guidelines for eligibility for a grant under this section. In establishing those guidelines, the department shall provide that no person may be awarded a grant under this section unless that person and all employes of that person who provide care and supervision for children have received not less than 20 hours of training in child development and safety. The department need not promulgate those guidelines as rules under ch. 227.

SB199, s. 12 Section 12. 49.137 (6) of the statutes is renumbered 49.137 (6) (b).

SB199, s. 13 Section 13. 49.137 (6) (a) of the statutes is created to read:

SB199,13,2 49.137 (6) (a) The department shall establish guidelines for eligibility for a grant under this section. In establishing those guidelines, the department shall provide that no person may be awarded a grant under sub. (2) or (3) unless that person and all employes of that person who provide care and supervision for children have received not less than 20 hours of training in child development and safety. The department need not promulgate those guidelines as rules under ch. 227.

SB199, s. 14 Section 14. 49.139 of the statutes is created to read:

SB199,13,12 49.139 Child care career education. (1) Child care career education scholarships. From the allocation under s. 49.155 (1g) (d), the department may award scholarships of not less than $500 per year nor more than $5,000 per year to individuals who are child care providers and to individuals who are employed by a child care provider or by a head start agency designated under 42 USC 9836 in the direct provision of child care services or in the administration of child care services to enable those individuals to earn associate degrees, bachelor's degrees or other credentials approved by the department in the fields of child care or early childhood education.

SB199,13,18 (2) Child care career education scholarship contracts. The department shall require a scholarship recipient under sub. (1) and, if applicable, and the child care provider or head start agency employing the scholarship recipient to enter into a contract with the department specifying the commitments required of each party to the contract. A contract under this subsection shall specify all of the following terms and conditions:

SB199,13,22 (a) The amount of the scholarship, which, subject to the $5,000 maximum limit specified in sub. (1), may cover up to 100% of the cost of the scholarship recipient's tuition and books and which, subject to that limit, may provide for not more than 3 hours per week of paid leave from work to study or attend classes.

SB199,13,24 (b) The number of credit hours of instruction that the scholarship recipient will take during the time period of the contract.

SB199,14,6 (c) A commitment by the scholarship recipient's employer to provide a pay raise or a bonus to the scholarship recipient on completion of the scholarship recipient's course of study and the amount of that pay raise or bonus; or, if the scholarship recipient is an individual who is a child care provider, a commitment by the department to pay that individual a bonus upon completion of the individual's course of study and the amount of that bonus.

SB199,14,14 (d) A commitment by the scholarship recipient not to resign from employment with the child care provider or head start agency that employed the scholarship recipient during the time period of the contract for not less than 6 months nor more than one year after the end of that time period, as specified in the contract; or, if the scholarship recipient is an individual who is a child care provider, a commitment by the individual to remain a child care provider for not less than 6 months nor more than one year after the end of the time period in the contract, as specified in the contract.

SB199,14,17 (3) Grant administration. The department may administer the scholarship program under this section or contract for the administration of that scholarship program.

SB199, s. 15 Section 15. 49.143 (2) (a) 8. of the statutes is amended to read:

SB199,14,21 49.143 (2) (a) 8. Work with participants, employers, child care providers, the local early childhood council under s. 49.135 and the community to identify child care needs, improve access to child care and expand availability of child care.

SB199, s. 16 Section 16. 49.148 (1m) (a) of the statutes is amended to read:

SB199,15,12 49.148 (1m) (a) A custodial parent of a child who is 12 weeks old one year old or less and who meets the eligibility requirements under s. 49.145 (2) and (3) may receive a monthly grant of $673 $628 unless another adult member of the custodial parent's Wisconsin works group is participating in, or is eligible to participate in, a Wisconsin works employment position or is employed in unsubsidized employment, as defined in s. 49.147 (1) (c). A Wisconsin works agency may not require a participant under this subsection to participate in any employment positions. Receipt of a grant under this subsection does not constitute constitutes participation in a Wisconsin works employment position for purposes the purpose of calculating the time limits limit under s. 49.145 (2) (n) or, but does not constitute participation in a Wisconsin works employment position for the purpose of calculating the time limits under s. 49.147 (3) (c), (4) (b) 2. or (c) 4. or (5) (b) 2. if the child is born to the participant not more than 10 months after the date that the participant was first determined to be eligible for assistance under s. 49.19 or for a Wisconsin works employment position.

SB199, s. 17 Section 17. 49.155 (1) (aL) of the statutes is created to read:

SB199,15,15 49.155 (1) (aL) "Disabled" means physically or mentally incapable of caring for oneself.

SB199, s. 18 Section 18. 49.155 (1d) (a) of the statutes is amended to read:

SB199,15,21 49.155 (1d) (a) The department shall promulgate rules establishing standards for the certification of child care providers under s. 48.651. In establishing the requirements for certification as a Level II certified family day care provider, the department may not shall include a requirement for training for that providers have at least 20 hours of training in child development and safety.

SB199, s. 19 Section 19. 49.155 (1g) (d) of the statutes is created to read:

SB199,16,3 49.155 (1g) (d) From the appropriation under s. 20.445 (3) (mc), distribute $1,000,000 in fiscal year 1999-2000 and $2,500,000 in fiscal year 2000-01 for the purpose of providing child care career education scholarships under s. 49.139 (1). The department may carry forward moneys allocated under this paragraph that are not encumbered by June 30 of any year for allocation under this paragraph in the next fiscal year.

SB199, s. 20 Section 20. 49.155 (1m) (intro.) of the statutes is amended to read:

SB199,16,9 49.155 (1m) Eligibility. (intro.) A Wisconsin works agency shall determine eligibility for a child care subsidy under this section. Under this section, an individual may receive a subsidy for child care for a child who has not attained the age of 13 or, if the child is disabled, who has not attained the age of 19, if the individual meets all of the following conditions: