SB255: Bill Text

Currently, each employer that is subject to a contribution requirement must pay an annual special assessment for each year prior to 2000 in an amount that may not exceed the lesser of 0.01% of the employer's annual taxable payroll for unemployment insurance purposes or the employer's solvency contribution for that year for the purpose of financing the design or development of unemployment insurance information technology systems. The department of workforce development (DWD) must reduce the solvency rate that an employer must pay in each year prior to 2000 by the special assessment rate applicable to that employer for that year. (The solvency rate is the portion of an employer's contribution rate that is used to maintain the solvency of the unemployment reserve fund.) This bill makes the special assessment requirement and solvency rate offset applicable to calendar years 2000 and 2001. The bill also permits DWD to use the revenue generated by the assessments only for renovation and modernization of the unemployment insurance tax and accounting system.

Other changes

Quarterly wage report format

Currently, each employer that is subject to the unemployment insurance law must file with DWD a quarterly report of the wages paid to each of its employes and certain other information. Employers of 250 or more employes must file the report using a medium approved by DWD. If an employer is delinquent in filing a report, the employer is subject to a tardy filing fee of $15 to $115, depending on the number of its employes. This bill applies this reporting requirement to all employers of 100 or more employes. The bill also provides that once an employer becomes subject to the electronic reporting requirement, the employer must continue to report electronically, regardless of the number of its employes, unless that requirement is waived by DWD. Under the bill, an employer that becomes subject to an electronic reporting requirement is not required to file electronically until the fourth quarter after the quarter in which the requirement first applies. In addition, the bill changes the amounts of the tardy filing fees from not less than $25 to not more than $75, and permits DWD to assess a penalty against any employer that is subject to an electronic reporting requirement and that fails to report using an electronic medium approved by DWD in the amount of $10 for each employe whose information is not reported using an approved electronic medium.

Use of interest and penalty revenues

Currently, DWD collects interest on late payments required to be made to DWD by employers and various penalties for late payments and certain other infractions under the unemployment insurance law. The revenues from interest and penalties are used to finance administration of the unemployment insurance and other employment security programs, including employment security building construction costs and operation of public employment offices. This bill discontinues use of these interest and penalty revenues for employment security building construction and administrative purposes. Under the bill, the only authorized purpose for which these revenues may be used is unemployment insurance administration.

Fraudulent claims for benefits

Currently, if a person makes a false statement or representation in order to obtain benefits that are payable to another person, DWD may file a civil lawsuit to recover the amount of the benefits improperly paid. In addition, the person making the fraudulent statement or representation is guilty of a misdemeanor and is subject to a fine of not less than $100 nor more than $500 or imprisonment for not more than 90 days, or both, for each false statement or misrepresentation.

This bill provides, in addition, that DWD may, after an investigation, issue an administrative determination requiring the repayment of any benefits that were obtained in the name of another person and that were obtained by means of a false statement or representation and may also require the offender to pay an additional amount equal to not more than 50% of the amount of the benefits obtained. The determination may be appealed.

Grace period for reimbursements

Currently, public employers and nonprofit organizations may elect, in lieu of paying contributions to the unemployment reserve fund, to reimburse the fund for any benefit payments made by the fund that are chargeable to these employers. Any reimbursement is due not later than 20 days after DWD mails a bill to an employer for the reimbursement. This bill provides if DWD receives any such reimbursement by the last day of the month in which that 20th day occurs, the employer making the reimbursement is not liable for any interest or penalty.

Reissuance of voided benefit checks

Currently, if an unemployment insurance benefit check is not presented for payment within one year after its date of issue, the amount of the check is credited to the unemployment reserve fund and a replacement check may be issued within one year after the date on which the check becomes void.

This bill provides, instead, that, if an unemployment insurance benefit check is not presented for payment within one year after its date of issue, the amount of the check is credited to the unemployment reserve fund. The bill also provides that a replacement check may be issued if the employe to whom the original check was payable makes application therefor within six years after the date of issue of the original check. The change is retroactive to checks issued on or after January 1, 1995.

Use of federal employment security moneys

Currently, federal moneys received by this state under the federal Reed Act of 1954 may be used to pay benefits or for employment security administration, including unemployment insurance, the public employment service and related statistical operations. This bill provides, in accordance with federal law, that the moneys allocated to this state for federal fiscal years 2000, 2001 and 2002 may only be used for unemployment insurance administration.

Charging of certain improperly paid benefits

Currently, when DWD pays benefits to an employe improperly due to a departmental error, the account of the employer is not charged for the benefits. This bill removes conflicting language in current law to clarify that if the employer is subject to a requirement to pay contributions to the unemployment reserve fund, the cost of any benefits that are improperly paid to an employe of the employer and that are not recovered from that employe is charged to the balancing account of the unemployment reserve fund. The bill also clarifies that if benefits are erroneously paid to an employe due to the fault of an employer, the cost of the benefits is charged to the employer's account rather than the balancing account regardless of whether the benefits may have been paid as a result of a departmental error.

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:

SB255, s. 1 Section 1. 20.445 (1) (gd) of the statutes, as affected by 1997 Wisconsin Acts 27, 39 and 252, is amended to read:

SB255,9,13 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 (cm) and 108.22, assessments under s. 108.19 (1m) and forfeitures under s. 103.05 (5), all moneys not appropriated under. pars. (ge), (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), 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.

SB255, s. 2 Section 2. 20.445 (1) (ge) of the statutes is amended to read:

SB255,9,18 20.445 (1) (ge) Unemployment reserve fund research. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and 108.22, the amounts in the schedule for research relating to the current and anticipated condition of the unemployment reserve fund under s. 108.14 (6).

SB255, s. 3 Section 3. 20.445 (1) (gf) of the statutes is amended to read:

SB255,9,25 20.445 (1) (gf) Employment security Unemployment insurance administration. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and (13) (c) and 108.22, the amounts in the schedule for the administration of employment service programs and unemployment insurance programs under ch. 108 and s. 106.09 and federal or state unemployment 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 insurance program.

SB255, s. 4 Section 4. 20.445 (1) (gg) of the statutes is amended to read:

SB255,10,8 20.445 (1) (gg) (title) Unemployment information technology systems tax and accounting system; interest and penalties. From the moneys received as interest and penalties collected under ss. 108.04 (11) (c) and (cm) and (13) (c) and 108.22, as a continuing appropriation, the amounts in the schedule for the purpose specified in s. 108.19 (1e).

SB255, s. 5 Section 5. 20.445 (1) (gh) (title) of the statutes is amended to read:

SB255,10,11 20.445 (1) (gh) (title) Unemployment information technology systems tax and accounting system; assessments.

SB255, s. 6 Section 6. 20.445 (1) (n) of the statutes is amended to read:

SB255,10,22 20.445 (1) (n) Unemployment administration; federal moneys. All federal moneys received for the employment service under s. 106.09 (4) to (6), for the administration of unemployment insurance or for the performance of the department's functions under ch. 108, and for its other efforts to regularize employment, except moneys appropriated under par. (nc), 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 except as provided in s. 108.161 (3e), 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) .

SB255, s. 7 Section 7. 20.445 (1) (nb) of the statutes is amended to read:

SB255,11,11 20.445 (1) (nb) (title) Unemployment information technology systems tax and accounting system; federal moneys. As a continuing appropriation, the amounts in the schedule, as authorized by the governor 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 May 21, 1998.

SB255, s. 8 Section 8. 20.445 (1) (nc) of the statutes is created to read:

SB255,11,17 20.445 (1) (nc) Unemployment insurance administration; special federal moneys. All moneys received from the federal government under section 903 of the federal Social Security Act, as amended, as authorized by the governor under s. 16.54, for federal fiscal years 2000, 2001 and 2002, to be used for administration of unemployment insurance.

SB255, s. 9 Section 9. 108.02 (4) of the statutes is amended to read:

SB255,11,20 108.02 (4) Base period. An employe's "base "Base period" means the period that is used to compute an employe's benefit rights under s. 108.06 consisting of the:

SB255,11,23 (a) The first 4 of the 5 most recently completed quarters preceding the employe's benefit year, which is used to compute his or her benefit rights for that year under s. 108.06.; or

SB255, s. 10 Section 10. 108.02 (4) (b) of the statutes is created to read:

SB255,12,3 108.02 (4) (b) If an employe does not qualify to receive any benefits using the period described in par. (a), the period consisting of the 4 most recently completed quarters preceding the employe's benefit year.

SB255, s. 11 Section 11. 108.02 (12) (a) of the statutes is amended to read:

SB255,12,7 108.02 (12) (a) "Employe" means any individual who is or has been performing services for an employing unit, in an employment, whether or not the individual is paid directly by such employing unit; except as provided in par. (b), (bm), (c) or (d).

SB255, s. 12 Section 12. 108.02 (12) (b) (intro.) of the statutes is amended to read:

SB255,12,16 108.02 (12) (b) (intro.) Paragraph During the period beginning on January 1, 1996, and ending on December 31, 1999, and during the period beginning on January 1, 2004, with respect to contribution requirements, and during the period beginning on January 1, 1996, and ending on April 1, 2000, and during the period beginning on April 4, 2004, with respect to benefit eligibility, par. (a) does not apply to an individual performing services for an employing unit other than a government unit or nonprofit organization in a capacity other than as a logger or trucker, if the employing unit satisfies the department that:

SB255, s. 13 Section 13. 108.02 (12) (bm) of the statutes is created to read:

SB255,12,24 108.02 (12) (bm) During the 4-year period beginning on January 1, 2000, with respect to contribution requirements, and during the period beginning on April 2, 2000, and ending on April 3, 2004, with respect to benefit eligibility, par. (a) does not apply to an individual performing services for an employing unit other than a government unit or nonprofit organization in a capacity other than as a logger or trucker, if the employing unit satisfies the department that the individual meets 7 or more of the following conditions by contract and in fact:

SB255,13,2 1. The individual holds or has applied for an identification number with the federal internal revenue service.

SB255,13,6 2. The individual has filed business or self-employment income tax returns with the federal internal revenue service based on such services in the previous year or, in the case of a new business, in the year in which such services were first performed.

SB255,13,8 3. The individual maintains a separate business with his or her own office, equipment, materials and other facilities.

SB255,13,11 4. The individual operates under contracts to perform specific services for specific amounts of money and under which the individual controls the means and methods of performing such services.

SB255,13,13 5. The individual incurs the main expenses related to the services that he or she performs under contract.

SB255,13,16 6. The individual is responsible for the satisfactory completion of the services that he or she contracts to perform and is liable for a failure to satisfactorily complete the services.

SB255,13,19 7. The individual receives compensation for services performed under a contract on a commission or per-job or competitive-bid basis and not on any other basis.

SB255,13,21 8. The individual may realize a profit or suffer a loss under contracts to perform such services.

SB255,13,22 9. The individual has recurring business liabilities or obligations.

SB255,13,24 10. The success or failure of the individual's business depends on the relationship of business receipts to expenditures.

SB255, s. 14 Section 14. 108.04 (1) (b) 2. of the statutes is amended to read:

SB255,14,3 108.04 (1) (b) 2. While the employe is on a voluntary leave of absence granted for a definite period, until the period ends or until the employe returns to work, whichever occurs first, except as provided in par. (c); or

SB255, s. 15 Section 15. 108.04 (1) (c) of the statutes is created to read:

SB255,14,14 108.04 (1) (c) If a leave of absence is granted to an employe for a portion of a week, the employe's eligibility for benefits for that partial week shall be reduced by the amount of wages that the employe could have earned in his or her work had the leave not been granted. For purposes of this paragraph, the department shall treat the amount the employe would have earned as wages in that work for that week as wages earned by the employe and shall apply the method specified in s. 108.05 (3) (a) to compute the benefits payable to the employe. The department shall estimate the wages that an employe would have earned for a partial week if it is not possible to compute the exact amount of wages that the employe would have earned for that partial week.

SB255, s. 16 Section 16. 108.04 (2) (a) 1. of the statutes is amended to read:

SB255,14,17 108.04 (2) (a) 1. The individual is able to work and available for work and is seeking suitable work during that week; and

SB255, s. 17 Section 17. 108.04 (2) (a) 2. of the statutes is amended to read:

SB255,14,19 108.04 (2) (a) 2. As of that week, the individual has registered for work.; and

SB255, s. 18 Section 18. 108.04 (2) (a) 3. of the statutes is created to read:

SB255,14,25 108.04 (2) (a) 3. The individual is seeking suitable work during that week or, during the 104-week period beginning on the effective date of this subdivision .... [revisor inserts date], the individual conducts a reasonable search for suitable work during that week. The work search required under this subdivision must include 2 actions that constitute a reasonable search as prescribed by rule of the department.

SB255, s. 19 Section 19. 108.04 (5) of the statutes is amended to read:

SB255,15,24 108.04 (5) Discharge for misconduct. An employe whose work is terminated by an employing unit for misconduct connected with the employe's work is ineligible to receive benefits until 7 weeks have elapsed since the end of the week in which the discharge occurs and the employe earns wages after the week in which the discharge occurs equal to at least 14 times the employe's weekly benefit rate under s. 108.05 (1) in employment or other work covered by the unemployment insurance law of any state or the federal government. For purposes of requalification, the employe's weekly benefit rate shall be that rate which would have been paid had the discharge not occurred. The wages paid to an employe by an employer which terminates employment of the employe for misconduct connected with the employe's employment shall be excluded from the employe's base period wages under s. 108.06 (1) for purposes of benefit entitlement. The department shall, by rule, prescribe the conditions under which an employe's possession, use or impairment due to use of a controlled substance, as defined in s. 961.01 (4), or a controlled substance analog, as defined in s. 961.01 (4m), or an employe's violation of a work rule relating to controlled substances testing constitutes misconduct. This subsection does not preclude an employe who has employment with an employer other than the employer which terminated the employe for misconduct from establishing a benefit year using the base period wages excluded under this subsection if the employe qualifies to establish a benefit year under s. 108.06 (2) (a). The department shall charge to the fund's balancing account any benefits otherwise chargeable to the account of an employer that is subject to the contribution requirements under ss. 108.17 and 108.18 from which base period wages are excluded under this subsection.

SB255, s. 20 Section 20. 108.04 (6) of the statutes is amended to read:

SB255,16,12 108.04 (6) Disciplinary suspension. An employe whose work is suspended by an employing unit for good cause connected with the employe's work is ineligible to receive benefits until 3 weeks have elapsed since the end of the week in which the suspension occurs or until the suspension is terminated, whichever occurs first. The department shall, by rule, prescribe the conditions under which an employe's possession, use or impairment due to use of a controlled substance, as defined in s. 961.01 (4), or a controlled substance analog, as defined in s. 961.01 (4m), or an employe's violation of a work rule relating to controlled substances testing constitutes good cause for suspension. This subsection does not preclude an employe from establishing a benefit year during a period in which the employe is ineligible to receive benefits under this subsection if the employe qualifies to establish a benefit year under s. 108.06 (2) (a).

SB255, s. 21 Section 21. 108.04 (7) (title) of the statutes is amended to read:

SB255,16,14 108.04 (7) (title) Voluntary termination of employment work.

SB255, s. 22 Section 22. 108.04 (7) (b) of the statutes is amended to read:

SB255,16,22 108.04 (7) (b) Paragraph (a) does not apply if the department determines that the employe terminated his or her work with good cause attributable to the employing unit. In this paragraph, "good cause" includes, but is not limited to, a request, suggestion or directive by the employing unit that the employe violate federal or Wisconsin law, or sexual harassment, as defined in s. 111.32 (13), by an employing unit or employing unit's agent or a co-worker, of which the employer knew or should have known but failed to take timely and appropriate corrective action.

SB255, s. 23 Section 23. 108.04 (7) (cm) of the statutes is created to read:

SB255,17,7 108.04 (7) (cm) Paragraph (a) does not apply if an employe is hired to work a particular shift and if the department determines that the employe terminated his or her work as the result of a requirement by his or her employing unit to transfer his or her working hours to a shift occurring at a time that would result in a lack of child care for his or her minor children, provided that the employe is able to work and available for full-time work during the same shift that the employe worked in the employe's most recent work with that employing unit. For purposes of sub. (2) (a), such an employe is not deemed unavailable for work solely for refusing to work a shift other than the one for which the employe was hired.

SB255, s. 24 Section 24. 108.04 (7) (h) of the statutes is amended to read:

SB255,17,13 108.04 (7) (h) The department shall charge to the fund's balancing account benefits paid to an employe that are otherwise chargeable to the account of an employer that is subject to the contribution requirements of ss. 108.17 and 108.18 if the employe voluntarily terminates employment with that employer and par. (a), (c), (d), (e), (k), (L), (o), (p) or, (q) or (s) applies.

SB255, s. 25 Section 25. 108.04 (7) (i) of the statutes is repealed.

SB255, s. 26 Section 26. 108.04 (7) (s) of the statutes is created to read:

SB255,17,16 108.04 (7) (s) 1. In this paragraph:

SB255,17,21 a. "Domestic abuse" means physical abuse, including a violation of s. 940.225 (1), (2) or (3), or a threat of physical abuse by an adult family or adult household member against another family or household member; by an adult person against his or her spouse or former spouse; or by an adult person against a person with whom the person has a child in common.

SB255,17,23 b. "Family member" means a spouse, parent, child or person related by consanguinity to another person.

SB255,17,25 c. "Household member" means a person who is currently or formerly residing in a place of abode with another person.

SB255,18,1 2. Paragraph (a) does not apply if the employe:

SB255,18,5 a. Terminates his or her work due to domestic abuse, concerns about personal safety or harassment, concerns about the safety or harassment of his or her family members who reside with the employe or concerns about the safety or harassment of other household members;