LRB-1636/2
JTK:cjs:rs
2013 - 2014 LEGISLATURE
April 18, 2013 - Introduced by Senators Leibham, Gudex and Tiffany, cosponsored
by Representatives Klenke, Bernier, Endsley, Czaja, Jacque, Kestell,
Knodl, Murphy, Mursau, A. Ott, Petryk, Schraa, Thiesfeldt, Kooyenga and
Tittl. Referred to Committee on Workforce Development, Forestry, Mining,
and Revenue.
SB149,1,4 1An Act to repeal 20.445 (1) (fx); to amend 108.19 (1m) and 108.19 (1m); and to
2create
20.445 (1) (fx) of the statutes; relating to: payment of interest on
3advances made by the federal government to the unemployment reserve fund
4and making an appropriation.
Analysis by the Legislative Reference Bureau
Currently, if in any year the balance in the unemployment reserve fund is
insufficient to make full payment of unemployment insurance benefits that become
payable to claimants for that year, the Department of Workforce Development
(DWD) secures an advance from the federal unemployment account to enable this
state to make full payment of all benefits that become payable. Whenever the
balance in the unemployment reserve fund is sufficient to repay the federal
government for its advances and to continue to make payment of the benefits that
become payable, DWD repays the federal government for its outstanding advances.
Annually, the federal government assesses interest to this state on this state's
outstanding advances that have not been repaid. Currently, if in any year DWD is
unable to make full payment of the interest that becomes due from certain other
limited sources, each employer must pay an assessment to the state unemployment
interest payment fund in an amount specified by law sufficient to enable DWD to
make full payment of the interest due for that year.
This bill creates a one-time appropriation in the amount of $26,000,000 from
general purpose revenues to pay any interest that becomes due to the federal
government prior to July 1, 2015, on outstanding advances made to the

unemployment reserve fund. Under the bill, DWD must first use any available
moneys from this appropriation to make payment of the interest due for any year.
If the amount appropriated, together with other available sources, is insufficient to
make full payment of the interest that becomes due for any year, each employer must
pay an assessment in the amount determined by DWD sufficient to cover the
deficiency. If any unencumbered balance remains in the appropriation account
created by the bill at the end of the 2013-15 fiscal biennium, the balance lapses to
the general fund.
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:
SB149,1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
SB149,2 3Section 2. 20.445 (1) (fx) of the statutes is created to read:
SB149,2,64 20.445 (1) (fx) Interest on federal advances. Biennially, the amounts in the
5schedule to pay interest on advances made by the federal government to the
6unemployment reserve fund under s. 108.19 (1m).
SB149,3 7Section 3. 20.445 (1) (fx) of the statutes, as created by 2013 Wisconsin Act ....
8(this act), is repealed.
SB149,4 9Section 4. 108.19 (1m) of the statutes is amended to read:
SB149,3,2410 108.19 (1m) Each The department shall pay any interest due on advances from
11the federal unemployment account to the unemployment reserve fund under Title
12XII of the federal social security act (42 USC 1321 to 1324) by first applying any

1amount available for that purpose from the appropriation under s. 20.445 (1) (fx).
2If the amount appropriated under s. 20.445 (1) (fx) is insufficient to make full
3payment of the amount due for any year, the department shall then apply any
4unencumbered balance in the unemployment interest payment fund and any
5amounts paid under s. 108.20 (2m). If those amounts are insufficient to make full
6payment of the amount due for any year, the department shall require each
employer
7subject to this chapter as of the date a rate is established under this subsection shall
8to pay an assessment to the unemployment interest payment fund at a rate
9established by the department sufficient to pay interest due on those advances from
10the federal unemployment account under title XII of the social security act (42 USC
111321 to 1324)
. The rate established by the department for employers who finance
12benefits under s. 108.15 (2), 108.151 (2), or 108.152 (1) shall be 75% of the rate
13established for other employers. The amount of any employer's assessment shall be
14the product of the rate established for that employer multiplied by the employer's
15payroll of the previous calendar year as taken from quarterly employment and wage
16reports filed by the employer under s. 108.205 (1) or, in the absence of the filing of
17such reports, estimates made by the department. Each assessment made under this
18subsection is due on the 30th day commencing after the date on which notice of the
19assessment is mailed by the department. If the amounts collected from employers
20under this subsection are in excess of the amounts needed to pay interest due, the
21department shall use any excess to pay interest owed in subsequent years on
22advances from the federal unemployment account. If the department determines
23that additional interest obligations are unlikely, the department shall transfer the
24excess to the balancing account of the fund.
SB149,5
1Section 5 . 108.19 (1m) of the statutes, as affected by 2013 Wisconsin Act ....
2(this act), is amended to read:
SB149,5,43 108.19 (1m) The department shall pay any interest due on advances from the
4federal unemployment account to the unemployment reserve fund under Title XII of
5the federal social security act (42 USC 1321 to 1324) by first applying any amount
6available for that purpose from the appropriation under s. 20.445 (1) (fx). If the
7amount appropriated under s. 20.445 (1) (fx) is insufficient to make full payment of
8the amount due for any year, the department shall then apply any unencumbered
9balance in the unemployment interest payment fund and any amounts paid under
10s. 108.20 (2m). If those amounts are insufficient to make full payment of the amount
11due for any year, the department shall require each
Each employer subject to this
12chapter as of the date a rate is established under this subsection to shall pay an
13assessment to the unemployment interest payment fund at a rate established by the
14department sufficient to pay interest due on those advances from the federal
15unemployment account under Title XII of the social security act (42 USC 1321 to
161324)
. The rate established by the department for employers who finance benefits
17under s. 108.15 (2), 108.151 (2), or 108.152 (1) shall be 75% of the rate established
18for other employers. The amount of any employer's assessment shall be the product
19of the rate established for that employer multiplied by the employer's payroll of the
20previous calendar year as taken from quarterly employment and wage reports filed
21by the employer under s. 108.205 (1) or, in the absence of the filing of such reports,
22estimates made by the department. Each assessment made under this subsection
23is due on the 30th day commencing after the date on which notice of the assessment
24is mailed by the department. If the amounts collected from employers under this
25subsection are in excess of the amounts needed to pay interest due, the department

1shall use any excess to pay interest owed in subsequent years on advances from the
2federal unemployment account. If the department determines that additional
3interest obligations are unlikely, the department shall transfer the excess to the
4balancing account of the fund.
SB149,6 5Section 6. Effective dates. This act takes effect on the day after publication,
6except as follows:
SB149,5,87 (1) The treatment of section 108.19 (1m) (by Section 5 ) of the statutes and the
8repeal of section 20.445 (1) (fx) of the statutes take effect on July 1, 2015.
SB149,5,99 (End)
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