AB553: Bill Text

Liens for unpaid reimbursements and certain forfeitures

Currently, if an employer owes any contributions (taxes), interest, or fees to DWD, DWD has a lien on the employer's real and personal property located in this state at the time that DWD issues any initial determinations of liability, unless the lien is temporarily barred or stayed under bankruptcy or other insolvency law. This bill provides that DWD has a lien under the same conditions for any unpaid civil penalties imposed by DWD under the unemployment insurance law and for unpaid reimbursements of benefits payable by an employer that has elected to reimburse the unemployment reserve fund for benefits paid on its behalf instead of making contributions to the fund.

Administrative levies to collect certain liabilities

Currently, a governmental or nonprofit employer is generally permitted to elect to finance benefit payments by reimbursing the unemployment reserve fund for the cost of benefits charged to its account rather than by paying regular contributions (taxes) to finance these benefits. If a reimbursement is not paid when due, DWD may collect the reimbursement by bringing a lawsuit against the debtor in circuit court. This bill permits DWD to administratively levy against any property other than realty of a person who fails to pay a reimbursement when due. Under the levy procedure, the person in possession of property that is subject to levy must surrender the property to DWD and DWD applies the property to offset the amount owed by the owner, plus the expenses of the levy.

Currently, DWD may proceed against any third party that has in its possession property that is subject to levy for payment of delinquent contributions or penalties administratively assessed by DWD, or for repayment of benefit overpayments. A third party is not liable for more than 25% of the debt owed by the original debtor. This bill permits DWD to use the levy procedure to recover property owed to DWD by third parties, subject to the current limitations, for unpaid contributions and penalties and benefit overpayments that have not been repaid, as well as for unpaid reimbursements.

The bill also permits DWD to administratively levy against the property of any person who fails to pay fees assessed by DWD under the unemployment insurance law.

Partial successorship

Currently, if at least 25% of a business is transferred from one employer to another employer and the transferee requests DWD to treat it as a successor to the transferor for purposes of unemployment insurance experience, including contribution and benefit liability, DWD must treat the transferee as a successor, instead of treating it as a new employer, under certain conditions. This bill precludes a transferee from requesting that it be treated as a successor to a transferor unless 100% of the transferor's business is transferred to a single transferee, except that the bill requires that a transferee be treated as a successor, under certain conditions, if 100% of the transferor's business is transferred to the transferee or if the transferor's unemployment insurance account is overdrawn on the date of the transfer.

Fraud detection and prosecution

This bill requires DWD to furnish annually to the council on unemployment insurance a report summarizing DWD's activities related to detection and prosecution of unemployment insurance fraud. Currently, no such report is required.

Funding and position changes

This bill authorizes 15.0 federally funded project positions for DWD to carry out unemployment insurance information technology system redesign projects. The bill also appropriates $250,000 from revenue received by DWD for interest, penalties, and fees for unemployment insurance purposes to be used to pay for employment service expenses that were disallowed as federally aided costs.

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:

AB553, s. 1 Section 1. 20.445 (1) (gh) (title) of the statutes is amended to read:

AB553,9,3 20.445 (1) (gh) (title) Unemployment tax and accounting system information technology systems; assessments.

AB553, s. 2 Section 2. 20.445 (1) (nb) (title) of the statutes is amended to read:

AB553,9,6 20.445 (1) (nb) (title) Unemployment tax and accounting system information technology systems; federal moneys.

AB553, s. 3 Section 3. 49.45 (10) of the statutes is amended to read:

AB553,9,11 49.45 (10) Rule-making powers and duties. The department is authorized to promulgate such rules as are consistent with its duties in administering medical assistance. The department shall promulgate a rule defining the term "part-time intermittent care" for the purpose of s. 49.46.

AB553, s. 4 Section 4. 108.02 (10m) of the statutes is amended to read:

AB553,9,16 108.02 (10m) Educational service agency. "Educational service agency" means a governmental entity or Indian tribal unit which is established and operated exclusively for the purpose of providing services to one or more educational institutions.

AB553, s. 5 Section 5. 108.02 (12m) (intro.) of the statutes is renumbered 108.02 (24m) (intro.) and amended to read:

AB553,10,8 108.02 (24m) Employee service Temporary help company. (intro.) "Employee service "Temporary help company" means a leasing company or temporary help service an entity which contracts with clients or customers a client to supply individuals to perform services for the client or customer on a temporary basis to support or supplement the workforce of the client in situations such as personnel absences, temporary personnel shortages, and workload changes resulting from seasonal demands or special assignments or projects, and which, both under contract and in fact:

AB553, s. 6 Section 6. 108.02 (12m) (a) and (b) of the statutes are renumbered 108.02 (24m) (a) and (b) and amended to read:

AB553,10,12 108.02 (24m) (a) Negotiates with clients or customers for such matters as time, place, type of work, working conditions, quality, and price of the services;

AB553,10,14 (b) Determines assignments or reassignments of individuals to its clients or customers, even if the individuals retain the right to refuse specific assignments;

AB553, s. 7 Section 7. 108.02 (12m) (c) and (d) of the statutes are renumbered 108.02 (24m) (c) and (d).

AB553, s. 8 Section 8. 108.02 (12m) (e) of the statutes is renumbered 108.02 (24m) (e) and amended to read:

AB553,10,20 108.02 (24m) (e) Hires and terminates individuals who perform services for the clients or customers.

AB553, s. 9 Section 9. 108.02 (13) (a) of the statutes is amended to read:

AB553,11,9 108.02 (13) (a) "Employer" means every government unit and Indian tribe, and any person, association, corporation, whether domestic or foreign, or legal representative, debtor in possession or trustee in bankruptcy or receiver or trustee of a person, partnership, association, or corporation, or guardian of the estate of a person, or legal representative of a deceased person, any partnership or partnerships consisting of the same partners, except as provided in par. (L), any limited liability company or limited liability companies consisting of the same members, except as provided in par. (kL), and any fraternal benefit society as defined in s. 614.01 (1) (a), which is subject to this chapter under the statutes of 1975, or which has had employment in this state and becomes subject to this chapter under this subsection and, notwithstanding any other provisions of this section, any service insurance corporation organized or operating under ch. 613, except as provided in s. 108.152 (6) (a) 3.

AB553, s. 10 Section 10. 108.02 (15) (f) (intro.) of the statutes is amended to read:

AB553,11,13 108.02 (15) (f) (intro.) "Employment" as applied to work for a government unit or Indian tribe, except as such unit or tribe duly elects otherwise with the department's approval, does not include service:

AB553, s. 11 Section 11. 108.02 (15) (g) (intro.) of the statutes is amended to read:

AB553,11,18 108.02 (15) (g) (intro.) "Employment" as applied to work for a government unit, an Indian tribe, or a nonprofit organization, except as such unit , tribe, or organization duly elects otherwise with the department's approval, does not include service:

AB553, s. 12 Section 12. 108.02 (15) (gm) of the statutes is created to read:

AB553,11,22 108.02 (15) (gm) "Employment," as applied to work for an Indian tribe, does not include service performed after the department terminates application of this chapter to the tribe under s. 108.152 (6) (a) 3.

AB553, s. 13 Section 13. 108.02 (15) (j) 4. and 5. of the statutes are amended to read:

AB553,11,24 108.02 (15) (j) 4. In the employ of a hospital by a patient of such hospital; or

AB553,12,4 5. In any quarter in the employ of any organization exempt from federal income tax under section 501 (a) of the internal revenue code, other than an organization described in section 401 (a) or 501 (c) (3) of such code, or under section 521 of the internal revenue code, if the remuneration for such service is less than $50.; or

AB553, s. 14 Section 14. 108.02 (15) (j) 6. of the statutes is created to read:

AB553,12,12 108.02 (15) (j) 6. By a nonresident alien for the period that he or she is temporarily present in the United States as a nonimmigrant under 8 USC 1101 (a) (15) (F), (J), (M), or (Q), if the service is performed to carry out the purpose for which the alien is admitted to the United States, as provided in 8 USC 1101 (a) (15) (F), (J), (M), or (Q), or by the spouse or minor child of such an alien if the spouse or child was also admitted to the United States under 8 USC 1101 (a) (15) (F), (J), (M), or (Q) for the same purpose.

AB553, s. 15 Section 15. 108.02 (15) (k) 18. c. of the statutes is amended to read:

AB553,12,16 108.02 (15) (k) 18. c. The amount of the lease payment is not contingent upon the income generated through the use of the motor vehicle or equipment during the lease term; or

AB553, s. 16 Section 16. 108.02 (15) (k) 19. b. of the statutes is amended to read:

AB553,12,22 108.02 (15) (k) 19. b. The individual has been paid or is treated as having been paid wages or other remuneration of $500 or more during his or her base period for services performed for at least one employer other than the seasonal employer which is subject to the unemployment insurance law of any state or the federal government.; or

AB553, s. 17 Section 17. 108.02 (15) (k) 20. of the statutes is created to read:

AB553,12,25 108.02 (15) (k) 20. Provided to a recipient of medical assistance under ch. 49 by an individual who is not an employee of a home health agency, if the service is:

AB553,13,5 a. Private duty nursing service or part-time intermittent care authorized under s. 49.46 (2) (b) 6. g., for which medical assistance reimbursement is available as a covered service, provided by an individual who is certified by the department of health and family services under s. 49.45 (2) (a) 11. as a nurse in independent practice or as an independent nurse practitioner; or

AB553,13,10 b. Respiratory care service for ventilator-dependent individuals authorized under s. 49.46 (2) (b) 6m., for which medical assistance reimbursement is available as a covered service, provided by an individual who is certified by the department of health and family services under s. 49.45 (2) (a) 11. as a provider of respiratory care services in independent practice.

AB553, s. 18 Section 18. 108.02 (15) (n) of the statutes is amended to read:

AB553,13,17 108.02 (15) (n) If any employment for a government unit, Indian tribe, or nonprofit organization excluded under other paragraphs of this subsection is required by the federal unemployment tax act, the social security act, or any other federal law, to be employment covered by this chapter as a condition for approval of this chapter for full tax credit against the tax imposed by the federal unemployment tax act, such exclusion shall not apply under this chapter.

AB553, s. 19 Section 19. 108.02 (17m) of the statutes is created to read:

AB553,13,21 108.02 (17m) "Indian tribe" has the meaning given in 25 USC 450b (e), and includes any subdivision, subsidiary, or business enterprise that is wholly owned by such an entity.

AB553, s. 20 Section 20. 108.02 (20g) of the statutes is created to read:

AB553,14,2 108.02 (20g) Part-time intermittent care. "Part-time intermittent care", as defined by the department of health and family services under s. 49.45 (10), means skilled nursing service that is provided in the home of a recipient of medical assistance under ch. 49 under a written plan of care that specifies the medical necessity of the care.

AB553, s. 21 Section 21. 108.02 (21c) of the statutes is created to read:

AB553,14,8 108.02 (21c) Private-duty nursing service. "Private-duty nursing service" means skilled nursing service under a written plan of care that specifies the medical necessity of the care, which is provided to a recipient of medical assistance under ch. 49 whose medical condition requires more continuous skilled nursing service than may be provided as part-time intermittent care.

AB553, s. 22 Section 22. 108.02 (21e) of the statutes is created to read:

AB553,14,13 108.02 (21e) Professional employer organization. "Professional employer organization" means any person who contracts to provide the nontemporary, ongoing employee workforce of a client under a written leasing contract and who under contract and in fact:

AB553,14,15 (a) Has the right to hire and terminate the employees who perform services for the client and to reassign the employees to other clients;

AB553,14,16 (b) Sets the rate of pay of the employees, whether or not through negotiations;

AB553,14,17 (c) Has the obligation to and pays the employees from its own accounts;

AB553,14,21 (d) Has a general right of direction and control over the employees, including corporate officers, which right may be shared with the client to the degree necessary to allow the client to conduct its business, meet any fiduciary responsibility, or comply with any applicable regulatory or statutory requirements;

AB553,15,2 (e) Assumes responsibility for the unemployment insurance coverage of the employees, files all required reports, pays all required contributions or reimbursements due on the wages of the employees, and otherwise complies with all of the provisions of this chapter that are applicable to employers on behalf of the client;

AB553,15,4 (f) Has the obligation to establish, fund, and administer employee benefit plans for the employees; and

AB553,15,5 (g) Provides notice of the employee leasing arrangement to the employees.

AB553, s. 23 Section 23. 108.02 (22m) of the statutes is amended to read:

AB553,15,12 108.02 (22m) School year employee. "School year employee" means an employee of an educational institution or an educational service agency, or an employee of a government unit, Indian tribe, or nonprofit organization which provides services to or on behalf of an educational institution, who performs services under an employment contract which does not require the performance of services on a year-round basis.

AB553, s. 24 Section 24. 108.02 (23g) of the statutes is created to read:

AB553,15,19 108.02 (23g) Skilled nursing service. "Skilled nursing service" means professional nursing service that is provided under a physician's order, that requires the skills of a licensed registered nurse or licensed practical nurse, and that is provided directly by the licensed registered nurse or licensed practical nurse or directly by the licensed practical nurse under the supervision of the licensed registered nurse.

AB553, s. 25 Section 25. 108.02 (29) of the statutes is created to read:

AB553,15,22 108.02 (29) Working day. "Working day" has the meaning given in s. 227.01 (14).

AB553, s. 26 Section 26. 108.04 (2) (a) 3. of the statutes is amended to read:

AB553,16,7 108.04 (2) (a) 3. The individual is seeking suitable work during that week or, during the 104-week 156-week period beginning on January 2, 2000, the individual conducts a reasonable search for suitable work during that week. The work reasonable search required under during the period specified in this subdivision must include 2 actions that constitute a reasonable search as prescribed by rule of the department. The department shall, by rule, require claimants to conduct a reasonable search for suitable work during the period beginning after the 156-week period specified in this subdivision and shall, by rule, prescribe standards for the search to be considered reasonable.

AB553, s. 27 Section 27. 108.04 (7) (h) of the statutes is amended to read:

AB553,16,13 108.04 (7) (h) The department shall charge to the fund's balancing account benefits paid to an employee 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 employee voluntarily terminates employment with that employer and par. (a), (c), (d), (e), (k), (L), (o), (p), (q), or (s) or sub. (16) (b) applies.

AB553, s. 28 Section 28. 108.04 (8) (c) of the statutes is amended to read:

AB553,17,6 108.04 (8) (c) If an employee fails, without good cause, to return to work with a former employer that recalls the employee within 52 weeks after the employee last worked for that employer, the employee is ineligible to receive benefits until 4 weeks have elapsed since the end of the week in which the failure occurs and the employee earns wages after the week in which the failure occurs equal to at least 4 times the employee'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 employee's weekly benefit rate shall be that rate which would have been paid had the failure not occurred. This paragraph does not preclude an employee from establishing a benefit year during a period in which the employee is ineligible to receive benefits under this paragraph if the employee 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 any employer that is subject to the contribution requirements under ss. 108.17 and 108.18 whenever an employee of that employer fails, without good cause, to return to work with that employer. If an employee receives actual notice of a recall to work, par. (a) applies in lieu of this paragraph.

AB553, s. 29 Section 29. 108.04 (13) (d) 4. (intro.) of the statutes is amended to read:

AB553,17,10 108.04 (13) (d) 4. (intro.) To correct any erroneous payment not so adjusted from the account of an employer which is a government unit, an Indian tribe, or a nonprofit organization and which has elected reimbursement financing, the department shall:

AB553, s. 30 Section 30. 108.04 (16) (b) of the statutes is amended to read:

AB553,17,16 108.04 (16) (b) The requalifying employment requirement under subs. (7) and (8) and the general qualifying requirements under sub. (2) do not apply to an individual as a result of the individual's enrollment in training or leaving unsuitable work to enter or continue training under 19 USC 2296 or a plan approved under 29 USC 2822.

AB553, s. 31 Section 31. 108.04 (17) (b) of the statutes is amended to read:

AB553,17,22 108.04 (17) (b) A school year employee of a government unit, Indian tribe, or nonprofit organization which provides services to or on behalf of an educational institution who performs services in an instructional, research, or principal administrative capacity is ineligible for benefits based on such services for any week of unemployment which occurs:

AB553,18,2 1. During the period between 2 successive academic years or terms, if the school year employee performed such services for such a government unit, Indian tribe, or nonprofit organization in the first such year or term and if there is reasonable assurance that he or she will perform such services for such a government unit, Indian tribe, or nonprofit organization in the 2nd such year or term; or