SB708: Bill Text

b. With two exceptions, persons or families of low and moderate income with assets that exceed $2,000 in cash equity value or a vehicle having an equity value of $10,000 or greater may not receive housing or housing assistance from WHEDA. This prohibition does not apply to a person who is disabled or aged 62 or older.

c. No adult may spend the night in the home of any person or family of low and moderate income who receives housing or housing assistance directly or indirectly from WHEDA if the income of that adult was not considered in determining the eligibility of the persons and families to receive housing or housing assistance. The bill defines "adult" as a person who is 18 years of age or older, except that for purposes of investigating or prosecuting a person who is alleged to have violated any state or federal criminal law or any civil law or municipal ordinance, "adult" means a person who has attained 17 years of age. Any person who violates this prohibition is guilty of a Class A misdemeanor.

If WHEDA determines that it may not implement the limitations and prohibitions established under the bill without a waiver of federal law from HUD and that a waiver of federal law is available, WHEDA must apply for and obtain a waiver from HUD before it may implement the limitations and prohibitions.

Department of Commerce low-income housing assistance

Under current law, the Department of Commerce (Commerce) may make grants or loans, directly or through agents designated by the department, to persons or families of low or moderate income to defray housing costs, including utility costs, and may make grants to community-based organizations, organizations operated for profit, or housing authorities to improve the ability of these entities to provide housing opportunities for persons or families of low or moderate income.

This bill requires Commerce to impose limits on eligibility and housing for families and persons of low and moderate income seeking housing assistance directly or indirectly through Commerce. Under the requirement, persons or families of low and moderate income who receive housing or assistance with housing costs, assistance with utility-related costs, grants, or loans from any project or program administered by Commerce as described above must be subject to the following limitations:

1. A person or family of low or moderate income must be restricted to housing in which the square footage is less than 50 percent of the average square footage for a rental unit of average rental value in the county in which the person or family resides. In order to satisfy this requirement, Commerce may require more than two unrelated persons or families of low or moderate income in one housing unit.

2. With two exceptions, persons or families of low and moderate income with assets that exceed $2,000 in cash equity value or a vehicle having an equity value of $10,000 or greater may not receive housing or assistance with housing costs or utility-related costs, from Commerce. This prohibition does not apply to a person who is disabled or aged 62 or older.

3. No adult may spend the night in the home of any person or family of low or moderate income who receives housing or assistance with housing costs or utility-related costs or who benefits from a housing assistance grant or loan made by Commerce if the income of that adult was not considered in determining the eligibility of the person or family to receive housing, assistance, or benefits. Any person who violates this prohibition is guilty of a Class A misdemeanor.

If Commerce determines that it may not implement the limitations and prohibitions established under the bill without a waiver of federal law from HUD and that a waiver of federal law is available, Commerce must apply for and obtain a waiver from HUD before it may implement the limitations and prohibitions.

Higher education grants and scholarships

Under current law, the Higher Educational Aids Board (HEAB) awards certain grants based on financial need. Those grants include Wisconsin higher education grants for students enrolled in public institutions of higher education or tribal colleges in this state, tuition grants for students enrolled in private institutions of higher education in this state, and minority undergraduate grants for minority students enrolled in private institutions of higher education or technical colleges in this state.

Currently, those grants are awarded based on a formula that accounts for expected parental and student contributions and that is consistent with nationally approved needs analysis methodology. Under current federal law setting forth that needs analysis methodology, parental income and assets for a dependent student whose parents are divorced or separated is determined by including only the income and assets of the parent with whom the student resided for the greater portion of the 12-month period preceding the date of the application or, if that criterion does not apply, only the income and assets of the parent who provided the greater support during that 12-month period.

This bill requires HEAB, in determining the expected parental contribution for a student under 22 years of age who is a dependent of his or her parents, to include in the parental income and assets that are available for that contribution the income and assets of both of the student's parents. The bill also prohibits the Board of Regents of the University of Wisconsin System from awarding a scholarship that is based on financial need to a student under 22 years of age who is a dependent of his or her parents unless the calculation of the student's financial need includes consideration of the income and assets of both of the student's parents.

Local housing authorities

Under current law, any city, village, town, or county may create a housing authority, which may acquire, lease, and operate housing projects for persons of low income. A housing authority may accept grants from the federal government for any housing project that the authority undertakes.

This bill requires a local housing authority to impose limits on eligibility for persons of low income that are similar to the limits on eligibility that WHEDA and the Department of Commerce are required to impose under the bill.

Taxation

Under federal law, the earned income tax credit (EITC) is a refundable tax credit for low-income workers. If the amount of the claim exceeds the worker's tax liability, the claimant receives a check for the excess amount from the Internal Revenue Service. The amount of the credit for which a claimant is eligible is based, in part, on whether the claimant has no qualifying children, one qualifying child, or more than one qualifying child.

Under current law, the refundable Wisconsin EITC may be claimed in an amount equal to a certain percentage of the federal basic EITC. To be eligible for the Wisconsin EITC, an individual must have one or more qualifying children. The Wisconsin EITC is equal to 4 percent of the federal credit if the claimant has one qualifying child, 14 percent of the federal credit if the claimant has two qualifying children, and 43 percent of the federal credit if the claimant has three or more qualifying children.

Under this bill, no new claims under the Wisconsin EITC may be filed for a taxable year that begins after December 31, 2010.

Under current law, an individual income tax personal exemption exists in the amount of $700 for each taxpayer who is required to file an income tax return and $700 for the taxpayer's spouse, except if the spouse is filing separately or as a head of household. A taxpayer may also claim a $700 exemption for each dependent for whom he or she is entitled to claim an exemption under the Internal Revenue Code. In general, an additional exemption of $250 may be claimed by a taxpayer, and spouse, who has reached the age of 65 before the close of the taxable year to which his or her tax return relates.

This bill increase the personal exemption for dependents from $700 to $2,200.

Because this bill directly or substantially affects the development, construction, cost or availability of housing in this state, the Department of Commerce, as required by law, will prepare a report to be printed as an appendix to this bill.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

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:

SB708, s. 1 Section 1. 16.27 (5) (intro.) of the statutes is amended to read:

SB708,8,4 16.27 (5) Eligibility. (intro.) Subject to the requirements of subs. (4) (b) and (8) and except as provided in sub. (5m), the following shall receive low-income energy assistance under this section:

SB708, s. 2 Section 2. 16.27 (5m) of the statutes is created to read:

SB708,8,9 16.27 (5m) Limitations on eligibility. (a) 1. Except as provided in subd. 2, a household with assets that exceed $2,000 in combined equity value or with a vehicle having an equity value of $10,000 or greater shall not be eligible for low-income energy assistance under this section.

SB708,8,11 2. Subdivision 1. does not apply if any individual member of the household is disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.

SB708,8,20 (b) If the department of administration determines it may not implement the limitation under par. (a) 1. without a waiver from the federal department of health and human services and that such a waiver may be requested under federal law, the authority shall request a waiver from the secretary of the federal department of health and human services. If a waiver that is consistent with par. (a) 1. is granted and in effect, the department of administration shall implement the limitation on eligibility under par. (a) 1. If a waiver is required, the department of administration may not implement the limitation on eligibility under par. (a) 1. unless a waiver is granted and in effect.

SB708, s. 3 Section 3. 36.11 (56) of the statutes is created to read:

SB708,9,4 36.11 (56) Scholarships. The board may not award a scholarship that is based in whole or in part on financial need to any student under the age of 22 who is a dependent of his or her parents unless the board's calculation of financial need includes consideration of the income and assets of both of the student's parents.

SB708, s. 4 Section 4. 39.435 (4) (a) of the statutes is amended to read:

SB708,9,9 39.435 (4) (a) The board shall award grants under this section based on a formula that accounts for expected parental and student contributions and that, except as provided in par. (b), is consistent with generally accepted definitions and nationally approved needs analysis methodology.

SB708, s. 5 Section 5. 39.435 (4) (b) of the statutes is created to read:

SB708,9,14 39.435 (4) (b) In determining the expected parental contribution for a student under 22 years of age who is a dependent of his or her parents, the board shall include in the parental income and assets that are available for that contribution the income and assets of both of the student's parents.

SB708, s. 6 Section 6. 39.44 (3) (a) of the statutes is amended to read:

SB708,9,18 39.44 (3) (a) Award grants to eligible students on the basis of financial need, as determined by the board, using the needs analysis methodology used under s. 39.435.

SB708, s. 7 Section 7. 49.148 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is repealed.

SB708, s. 8 Section 8. 49.155 (5) of the statutes is amended to read:

SB708,9,25 49.155 (5) Liability for payment. An individual is liable for the percentage of the cost of the child care specified by the department in a printed copayment schedule, except that the department shall require a minimum copayment of $2 per hour of child care per child. An individual who is under the age of 20 and is attending high school or participating in a course of study meeting the standards established under s. 115.29 (4) for the granting of a declaration of equivalency to high school graduation may not be determined liable for more than the minimum copayment amount for the type of child care received and the number of children receiving child care.

SB708, s. 9 Section 9. 49.155 (6g) (a) 2. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB708,10,9 49.155 (6g) (a) 2. Except as provided in subd. 3. and subject to subd. 5., the department shall authorize no more than 12 hours of child care per day per child.

SB708, s. 10 Section 10. 49.155 (6g) (a) 3. of the statutes, as created by 2009 Wisconsin Act 28, is amended to read:

SB708,10,15 49.155 (6g) (a) 3. The Subject to subd. 5., department may authorize more than 12 hours, not exceeding 16 hours, of child care per day for a child whose parent provides written documentation of work or transportation requirements that exceed 12 hours in a day.

SB708, s. 11 Section 11. 49.155 (6g) (a) 5. of the statutes is created to read:

SB708,10,18 49.155 (6g) (a) 5. The department may not authorize more than 40 hours of child care per week for a child.

SB708, s. 12 Section 12. 49.471 (11c) of the statutes is created to read:

SB708,11,3 49.471 (11c) Deductible and coinsurance. Notwithstanding subs. (10) and (11), the department shall require an annual deductible of $500 per family for services provided under BadgerCare Plus and coinsurance of at least 5 percent of the cost of services received after the deductible has been paid. If the department determines that it needs a waiver to require the deductible and coinsurance payments under this subsection, the department shall request a waiver from the secretary of the federal department of health and human services and may not impose the deductible and coinsurance requirements under this subsection unless the waiver is granted and in effect.

SB708, s. 13 Section 13. 49.79 (1) (a) of the statutes is repealed.

SB708, s. 14 Section 14. 49.79 (5) of the statutes is repealed.

SB708, s. 15 Section 15. 49.79 (7m) of the statutes is created to read:

SB708,11,13 49.79 (7m) Authorized foods. The department shall by rule specify foods that may be purchased with food stamp coupons. The department may not authorize soda water beverages, as defined in s. 97.29 (1) (i), or snack foods, such as potato chips or similar processed food products, to be purchased with food stamp coupons. The department shall require that food stamp coupons be used to purchase a lower-priced brand of a food item if similar food items are available in lower-priced and higher-priced brands.

SB708, s. 16 Section 16. 49.79 (10) of the statutes is created to read:

SB708,11,22 49.79 (10) Waiver for implementation. Notwithstanding sub. (7m) and s. 49.795 (6m) and (8) (g), if the department determines that it may not implement the requirements under sub. (7m) or impose the penalty under s. 49.795 (8) (g) for a violation of s. 49.795 (6m) without a federal waiver, the department shall request a waiver from the secretary of the federal department of agriculture, if such a waiver may be requested under federal law, and may not implement the requirements under sub. (7m) or impose the penalty under s. 49.795 (8) (g) for a violation of s. 49.795 (6m) unless both of the following are satisfied:

SB708,11,23 (a) The waiver may be requested under federal law.

SB708,11,24 (b) The waiver is granted and in effect.

SB708, s. 17 Section 17. 49.795 (6m) of the statutes is created to read:

SB708,12,4 49.795 (6m) No person may spend the night in the home of a member of a household certified as eligible for the food stamp program unless that person's income is considered in determining the eligibility of the household for the food stamp program.

SB708, s. 18 Section 18. 49.795 (8) (a) (intro.) of the statutes is amended to read:

SB708,12,7 49.795 (8) (a) (intro.) For Except as provided in par. (g), for a first offense under this section:

SB708, s. 19 Section 19. 49.795 (8) (b) (intro.) of the statutes is amended to read:

SB708,12,10 49.795 (8) (b) (intro.) For Except as provided in par. (g), for a 2nd or subsequent offense under this section:

SB708, s. 20 Section 20. 49.795 (8) (c) of the statutes is amended to read:

SB708,12,14 49.795 (8) (c) For Except as provided in par. (g), for any offense under this section, if the value of the food coupons is $5,000 or more, a person who violates this section is guilty of a Class G felony.

SB708, s. 21 Section 21. 49.795 (8) (g) of the statutes is created to read:

SB708,12,17 49.795 (8) (g) Any person who violates sub. (6m) is guilty of a Class A misdemeanor and subject to the penalty under s. 939.51 (3) (a).

SB708, s. 22 Section 22. 49.842 of the statutes is created to read:

SB708,12,19 49.842 Drug testing for eligibility. (1) Definitions. In this section:

SB708,12,21 (a) "Applicant" means an individual who applies for assistance under any assistance program under this chapter.

SB708,12,25 (b) "Assistance program under this chapter" means any program administered by the department of health services or the department of children and families under this chapter under which the department administering the program provides services, benefits, or other assistance.

SB708,13,1 (c) "Controlled substance" has the meaning given in 21 USC 802 (6).

SB708,13,3 (d) "Recipient" means an individual who is receiving services, benefits, or other assistance under an assistance program under this chapter.

SB708,13,8 (2) Drug test required. Notwithstanding any other eligibility requirements specified in this chapter, to the extent permitted under federal law, an applicant or a recipient shall, as a condition of eligibility or continued eligibility, be required to submit to a test for the use of a controlled substance. If the test results are positive, the applicant or recipient shall be ineligible for any assistance program.

SB708, s. 23 Section 23. 66.1204 of the statutes is created to read:

SB708,13,13 66.1204 Limitations on eligibility. (1) (a) In its role under 42 USC 1437f as a public housing agency, as defined in 24 CFR 982.4 (b), an authority may not provide assistance payments to any person unless the person satisfies one of the following:

SB708,13,14 1. The person is disabled, as defined in s. 49.468 (1) (a) 1.

SB708,13,15 2. The person is age 62 or older.

SB708,13,19 (b) An authority shall ensure that all of the following requirements are satisfied in connection with housing or housing assistance provided directly or indirectly by the authority, or by a state public body with which it contracts, to any person of low income:

SB708,13,25 1. Any housing provided to a person of low income shall be restricted to housing in which the square footage is less than 50 percent of the average square footage for a rental unit of average rental value in the county in which the person of low income resides. In order to satisfy the requirements of this subdivision, the authority may require that more than two unrelated persons of low income be housed in one housing unit.

SB708,14,4 2. a. Except as provided in subd. 2. b., no person or family with assets that exceed $2,000 in combined equity value or with a vehicle having an equity value of $10,000 or greater shall be eligible for housing or housing assistance under this subchapter.

SB708,14,6 b. Subdivision 2. a. does not apply to any person who is disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.

SB708,14,12 3. a. Except as provided in subd. 3. b., no adult, as defined in s. 48.02 (1d), may spend the night in the home of any person of low income who receives housing or housing assistance in or from any project or program under this subchapter if the income of that adult was not considered in determining the eligibility of the person to receive housing or housing assistance. Any person who violates this subd. 3. a. is guilty of a Class A misdemeanor and subject to the penalty under s. 939.51 (3) (a).

SB708,14,14 b. Subdivision 3. a. does not apply to any person who is disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.