STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2049 (R03/2012)
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Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
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ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
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1. Type of Estimate and Analysis
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X Original
⍽ Updated
⍽ Corrected
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2. Administrative Rule Chapter, Title and Number
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Chapter REEB 16, Approved Forms and Legal Advice.
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3. Subject
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Update definitions, clarify use of forms, update forms listing, and make minor corrections.
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4. Fund Sources Affected
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5. Chapter 20, Stats. Appropriations Affected
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⍽ GPR
⍽ FED X PRO ⍽ PRS
⍽ SEG ⍽ SEG-S
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s. 20.165 (1) (g), Stats.
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6. Fiscal Effect of Implementing the Rule
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X No Fiscal Effect
⍽ Indeterminate
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⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
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⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Cost
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7. The Rule Will Impact the Following (Check All That Apply)
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⍽ State's Economy
⍽ Local Government Units
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⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
⍽ Small Businesses (if checked, complete Attachment A)
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8. Would Implementation and Compliance Costs Be Greater Than $20 million?
⍽ Yes
X No
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9. Policy Problem Addressed by the Rule
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With the exception of renumbering the chapter to REEB 16, the chapter had not been revised since 1986. Numerous terms are being added and clarity is proposed where needed.
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10. Summary of the businesses, business sectors, associations representing business, local governmental units, and individuals that may be affected by the proposed rule that were contacted for comments.
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Licensees, real estate brokers, and salespersons.
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11. Identify the local governmental units that participated in the development of this EIA.
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None known.
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12. Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
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There are no new or increased costs associated with the promulgation of these rules on any of the business sectors listed.
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13. Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
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The proposed rule will use common terminology and contemporary practices specific to the real estate industry.
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14. Long Range Implications of Implementing the Rule
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By promulgating these proposed revisions, the rule is not expected to need further revisions in the long-term.
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15. Compare With Approaches Being Used by Federal Government
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Few Federal forms are mandated for use by the states; exceptions being HUD-transactions, federally-backed mortgages, and radon disclosure.
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16. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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IL, MI, and MN regulate and license the real estate industry through a board or a commission that approves forms for real estate licensees to use; IA does not.
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17. Contact Name
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18. Contact Phone Number
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Jean MacCubbin
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(608) 266-0955
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Illinois
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Each claimant shall file his or her claim by telephone. The only exception is if the claimant files his or her claim by mail. To file a claim by mail the claimant must: speak neither English nor Spanish; be hearing impaired; or have no reasonable access to a touch-tone telephone. (56 Il. Adm. Code 2720.112)
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Indiana
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A claimant must report on their job search on a weekly basis via submission of the online claim form, or in any other manner as required by the department.
(646 IN 5-9-4 Administrative Code)
A claimant is not eligible for benefits in any week unless he or she has filed a claim for benefits and reports to the department each week that he or she continues to meet all eligibility requirements. A claimant's claim for benefits, and weekly report to the department, must be filed in the form and manner prescribed by the department. (646 IN 5-9-2 Administrative Code)
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Iowa
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An individual may file an initial claim for unemployment benefits by telephone, in person or other means prescribed by the department or may call the service center during regular business hours. Claims filed in accordance with this rule shall be deemed filed as of Sunday of the week in which the claim is filed, but must register for work at a workforce development center (IA 871-24.2 (96)) Administrative Code
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Michigan
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Claims for benefits shall be made pursuant to regulations prescribed by the unemployment agency. The unemployment agency shall designate representatives who shall promptly examine claims and make a determination on the facts. (M.C.L.A. 421.32)
An individual shall file a new, additional, or reopened claim or shall report to file a continued claim as directed by the agency. (Mich. Admin. Code R. 421.210 (3))
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Minnesota
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An application for unemployment benefits may be filed in person, by mail, or by electronic transmission as the unemployment insurance agency may require.
(M.S.A. s. 268.07 Statutes Annotated)
The unemployment insurance agency shall notify the claimant of the method that should be used to make ongoing claims for benefits. The first method is through electronic transmission which means the claims may be filed by electronic mail address, telephone number, or Internet address prescribed by the commissioner for that claimant. The other method that the unemployment insurance agency may designate for the claimant is for the claim to be filed by mail. (M.S.A. s. 268.0865 Statutes Annotated)
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Illinois
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Unless otherwise instructed, a claimant must establish that he or she is able to work, available for work and actively seeking work during each week for which he or she is claiming benefits. The claimant must show that he or she is conducting a thorough, active and reasonable search for appropriate work on his or her own by keeping records of what he or she is doing to find work. (56 Il. Adm. Code 2865.100)
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Indiana
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To establish an effort to secure full-time work, a claimant is required to search for three (3) positions in each week for which benefits are claimed. (646 IN 5-9-3 Administrative Code)
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Iowa
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The Iowa law specifies that an individual must earnestly and actively seek work. This is interpreted to mean that a registration for work at a workforce development center or state employment service office in itself does not meet the requirements of the law. Nor is it interpreted to mean that every individual must make a fixed number of employer contacts each week to establish eligibility. The number of contacts that an individual must make is dependent upon the condition of the local labor market, the duration of benefit payments, a change in claimant characteristics, job prospects in the community, and such other factors as the department deems relevant. (IA 871-24.22 (96) f. Administrative Code) |
Michigan
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The claimant has registered for work and has continued to report in accordance with unemployment agency rules and is actively engaged in seeking work. Except for a period of disqualification, the requirement that the claimant shall seek work may be waived by the unemployment agency if it finds that suitable work is unavailable both in the locality where the individual resides and in those localities in which the individual has earned wages during or after the base period, an otherwise eligible individual shall not be ineligible for benefits because he or she is participating in training with the approval of the unemployment agency.
(M.C.L.A. 421.28)
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Minnesota
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An applicant may be eligible to receive unemployment benefits for any week if the applicant was actively seeking suitable employment. “Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area. Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not “actively seeking suitable employment."
(M.S.A. s. 268.085 Statutes Annotated)
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Illinois
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• A claimant must register with the Illinois Employment Service unless otherwise instructed by the local office. There are ten circumstances in which a claimant will not be required to register with the Illinois Employment Service (56 Il. Adm. Code 2865.100)
• An unemployed individual shall be eligible to receive benefits with respect to any week only if he has registered for work at and thereafter, continues to report at an employment office in accordance with such regulations as may be prescribed. (820 ILCS 405/500 Compiled Statutes)
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Indiana
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• Registration is required and accomplished through enrollment in the Indiana Career Connect (ICC) Database. (646 IN 5-9-1 Administrative Code)
• Claimant must register for work within ten (10) days of filing an initial claim for benefits. To enhance the registration, claimants should complete a resume and post online. (646 IN 5-9-1 Administrative Code)
• An unemployed individual is eligible to receive benefits with respect to any week if the individual has registered for work at an employment office or branch thereof or other agency designated by the commissioner within the time limits that the department adopts by rule. (IC 22-4-14-2 Code)
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Iowa
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• Unemployed persons must report in person to the nearest workforce development center and register for work. (IA 871-24.2 (96) Administrative Code)
• An unemployed individual is eligible to receive benefits with respect to any week only if the department finds that the individual has registered for work at, and thereafter, continues to report to an employment office in accordance with regulations as the department prescribes. (I.C.A. s. 96.4 Code)
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Michigan
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• A claimant shall register for work as instructed by the agency and fully and accurately supply information as to the claimant's past work experience and training and other personal data as may be necessary to assure that the claimant is considered for referral to any available suitable work. (Mich. Admin. Code R. 421.208)
• Unemployed workers must register and create a profile on www.mitalenet.org and report in person to verify their registration to any Michigan Works! Agency Service Center no later than three (3) business days before their first contact to file a claim. Claimants must retain form of verification as proof of registration of work for one year. (Fact sheet #76 Work Registration Needed for Jobless Benefits)
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Minnesota
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• An applicant may be eligible to receive unemployment benefits for any week if the applicant was available for suitable employment. (M.S.A. s. 268.085 Statutes Annotated)
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STATE OF WISCONSIN
DEPARTMENT OF ADMINISTRATION
DOA-2050 (C04/2012)
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Division of Executive Budget and Finance
101 East Wilson Street, 10th Floor
P.O. Box 7864
Madison, WI 53707-7864
FAX: (608) 267-0372
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EXISTING ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
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1. Type of Estimate and Analysis
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⍽ Repeal
X Modification
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2. Administrative Rule Chapter, Title and Number
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DWD s. 126 (Work Registration), 127 (Work Search), and 129 (Benefit Claiming Procedures), unemployment insurance requirements for claimants.
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3. Date Rule promulgated and/or revised; Date of most recent Evaluation
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• DWD s. 126 was originally ILHR s. 126. ILHR s. 126 was created by emergency rule and was effective January 8, 1984 and ILHR s. 126 was renumbered DWD s. 126 pursuant to s. 13.93 (2m) (b) 1., Stats. DWD s. 126 was last amended September of 2000.
• DWD s. 127 was originally ILHR s. 127. ILHR s. 127 was created by emergency rule and was effective January 8, 1984 and ILHR s. 127 was renumbered DWD s. 127 pursuant to s. 13.93 (2m) (b) 6. and 7., Stats. DWD s. 127 was last amended December of 2006.
• DWD s. 129 was originally ILHR s. 129. ILHR s. 129 was created by emergency rule and was effective January 8, 1984 and ILHR s. 129 was renumbered DWD s. 129 pursuant to s. 13.93 (2m) (b) 1., Stats. DWD s. 129 was last amended September of 2010.
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4. Plain Language Analysis of the Rule, its Impact on the Policy Problem that Justified its Creation and Changes in Technology, Economic Conditions or Other Factors Since Promulgation that alter the need for or effectiveness of the Rule.
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The rule modifies existing rules by simplifying and clarifying the intent of the administrative code provisions surrounding registration and work search requirements for an unemployment insurance claimant. Also the rule modification enables the Department of Workforce Development (DWD) to adapt work registration and work search requirements as advances in technology make changes possible and necessary. Moreover, the rule changes facilitate DWD's ability to audit the work search efforts of unemployment insurance claimants as required by the newly enacted statutory provision s. 108.14 (20), Stats., that was created by 2013 Wisconsin Act 36. In addition, the existing administrative rules provide for waivers from the work search requirement. The rule amendments decrease and narrow the remaining waivers.
The rule changes will streamline the ability of DWD to ensure that individuals receiving unemployment insurance benefits are actively seeking work to become reemployed. The rule modification will also strengthen DWD's objective that claimants are engaging in activities that constitute a reasonable effort to obtain employment.
The rule amendments clarify that DWD has the authority to request information from claimants to assist them in finding employment. More specifically, the amendments to DWD s. 129 grant DWD the flexibility to implement improvements with respect to claims filing procedures.
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5. Describe the Rule's Enforcement Provisions and Mechanisms
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There are a number of enforcement mechanism for these rules:
• If an unemployment insurance claimant does not adhere to the benefit claiming procedures, work registration requirements, and work search requirements, the claimant may be determined to be ineligible for unemployment insurance benefits.
• If an unemployment insurance claimant conceals any material fact relating to his or her eligibility for benefits including the requirements of DWD ss. 126, 127, or 129, for:
(1) Each single act of concealment a claimant is ineligible for benefits in an amount equivalent to two times his or her weekly benefit rate;
(2) Each single act of concealment occurring after the first act of concealment a claimant is ineligible for benefits in an amount equivalent to four times his or her weekly benefit rate; and,
(3) Each single act of concealment occurring after the date of the second or subsequent determination of concealment a claimant is ineligible for benefits in an amount equivalent to eight times his or her weekly benefit rate.
The ineligibility for benefit framework for acts of concealment is contained in s. 108.04 (11) (be), Stats.
• In addition to the ineligibility for benefits noted above, if an unemployment insurance claimant conceals any material fact relating to his or her eligibility for benefits including the requirements of DWD §§ 126, 127, or 129, the claimant will be charged a penalty of fifteen percent of the benefit payments erroneously paid to the claimant as a result of the act of concealment. The penalty framework for acts of concealment is pursuant to s. 108.04 (11) (bh), Stats.
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6. Repealing or Modifying the Rule Will Impact the Following (Check All That Apply)
X State's Economy
X Local Government Units
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⍽ Specific Businesses/Sectors
⍽ Public Utility Rate Payers
X Small Businesses
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7. Summary of the Impacts, including Compliance Costs, identifying any Unnecessary Burdens the Rule places on the ability of Small Business to conduct their Affairs.
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These rule amendments do not have any small business requirements but are expected to benefit all employers, including small business. First, the amendments are projected to result in more unemployment insurance claimants becoming reemployed sooner. As a result, unemployed individuals will be collecting unemployment insurance benefits for a shorter duration and there will be fewer charges to employers' unemployment insurance accounts. This will assist employers by reducing unemployment insurance tax. Second, more unemployment insurance claimants will be required to search for work and DWD will better be able to assist claimants who already are required to seek employment. Consequently, there are likely to be more and better job applications for employers to review as more employers seek to hire individuals.
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8. List of Small Businesses, Organizations and Members of the Public that commented on the Rule and its Enforcement and a Summary of their Comments.
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DWD posted the scope statement and proposed hearing draft on DWD's website and on the Wisconsin Administrative Rules' website for 14 days to solicit public comment on the economic impact of the rule. DWD did not receive any comments.
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9. Did the Agency consider any of the following Rule Modifications to reduce the Impact of the Rule on Small Businesses in lieu of repeal?
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⍽ Less Stringent Compliance or Reporting Requirements
⍽ Less Stringent Schedules or Deadlines for Compliance or Reporting
⍽ Consolidation or Simplification of Reporting Requirements
⍽ Establishment of performance standards in lieu of Design or Operational Standards
⍽ Exemption of Small Businesses from some or all requirements
⍽ Other, describe:
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10. Fund Sources Affected
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11. Chapter 20, Stats. Appropriations Affected
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⍽ GPR X FED
⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
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s. 20.115 (1) (q), Stats.
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12. Fiscal Effect of Repealing or Modifying the Rule
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⍽ No Fiscal Effect
X Indeterminate
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⍽ Increase Existing Revenues
⍽ Decrease Existing Revenues
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⍽ Increase Costs
⍽ Could Absorb Within Agency's Budget
⍽ Decrease Cost
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13. Summary of Costs and Benefits of Repealing or Modifying the Rule
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The rule amendments will make the rules consistent with the newly enacted legislation and update and modernize existing requirements with respect to claim filing procedures and work search and work registration requirements. The rule changes will strengthen the requirements for unemployed individuals to actively seek employment and thereby improve their employment prospects and align the job search requirements with the underlying goal of the unemployment insurance program. The amendments accomplish this by:
• Providing explicit authority for DWD to require unemployment insurance claimants to provide information to DWD to facilitate their reemployment efforts;
• Updating actions by claimants that will be considered to constitute a reasonable search for suitable work;
• Decreasing and fine-tuning the remaining the circumstances in which DWD will waive the requirement that claimants to receive unemployment insurance benefits must perform work search actions; and,
• Enhancing the procedures required to file claims for benefits in order to facilitate the ability of DWD to assist claimants find employment.
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14. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)
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⍽ Yes X No
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15. Long Range Implications of Repealing or Modifying the Rule
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These rule amendments are projected to have a positive economic impact. The increase in the requirement for work search activities will likely decrease charges to the Unemployment Insurance Trust Fund due to individuals obtaining employment sooner or being disqualified from receiving unemployment insurance benefits for not actively seeking work. This will have a positive economic impact on employers due to fewer charges to their unemployment insurance accounts. As a result, employers will be charged a lower rate of unemployment insurance tax.
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16. Compare With Approaches Being Used by Federal Government
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The unemployment insurance program was initiated on a national basis in the United States as Title III and Title IX of the Social Security Act of 1935 and is a Federal-State coordinated program. Each state administers its own program within national guidelines promulgated under federal law. As a condition of a state receiving its unemployment compensation administrative grant, 42 USC s. 503 (a) provides that the Secretary of Labor must find that the law of each state includes certain requirements. Specifically, 42 USC s. 503 (a) (12) provides that state laws must have as a condition of eligibility for unemployment insurance that claimants must be able to work, available to work, and actively seeking work. Moreover, 42 USC s. 503 (a) (10) provides that state laws must require that if claimants have been referred for reemployment services or similar services, to remain eligible for unemployment insurance benefits claimants shall complete such services or there must be justifiable cause for the claimants failing to participate in such services.
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17. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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As the Department of Labor's Comparison of State UI Laws states: “[i]n addition to registration for work at a local employment office, all states… , whether by law or practice, require that a worker be actively seeking work or making a reasonable effort to obtain work." The amendments to the rules bring Wisconsin's policies more in line with neighboring states' initiatives to facilitate unemployment insurance claimants' ability to find employment.
Benefit Claiming Procedure
• Illinois
Each claimant shall file his or her claim by telephone. The only exception is if the claimant files his or her claim by mail. To file a claim by mail the claimant must: speak neither English nor Spanish; be hearing impaired; or have no reasonable access to a touch-tone telephone. (56 Il. Adm. Code 2720.112)
• Iowa
An individual may file an initial claim for unemployment benefits by telephone, in person or other means prescribed by the department or may call the service center during regular business hours. Claims filed in accordance with this rule shall be deemed filed as of Sunday of the week in which the claim is filed, but a claimant must register for work at a workforce development center (IA 871-24.2 (96) Administrative Code)
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• Michigan
Claims for benefits shall be made pursuant to regulations prescribed by the unemployment insurance agency. The unemployment insurance agency shall designate representatives who shall promptly examine claims and make a determination on the facts. (M.C.L.A. 421.32)
An individual shall file a new, additional, or reopened claim or shall report to file a continued claim as directed by the agency. (Mich. Admin. Code R. 421.210 (3))
• Minnesota
An application for unemployment insurance benefits may be filed in person, by mail, or by electronic transmission as the unemployment insurance agency may require. (M.S.A. s. 268.07 Statutes Annotated)
The unemployment insurance agency shall notify the claimant of the method that should be used to make ongoing claims for benefits. The first method is through electronic transmission which means the claims may be filed by electronic mail address, telephone number, or Internet address prescribed by the commissioner for that claimant. The other method that the unemployment insurance agency may designate for the claimant is for the claim to be filed by mail. (M.S.A. s. 268.0865 Statutes Annotated)
Work Search Requirements
• Illinois
Unless otherwise instructed, a claimant must establish that he or she is able to work, available for work and actively seeking work during each week for which he or she is claiming benefits. The claimant must show that he or she is conducting a thorough, active and reasonable search for appropriate work on his or her own by keeping records of what he or she is doing to find work. (56 Il. Adm. Code 2865.100)
• Iowa
The Iowa law specifies that an individual must earnestly and actively seek work. This is interpreted to mean that a registration for work at a workforce development center or state employment service office in itself does not meet the requirements of the law. Nor is it interpreted to mean that every individual must make a fixed number of employer contacts each week to establish eligibility. The number of contacts that an individual must make is dependent upon the condition of the local labor market, the duration of benefit payments, a change in claimant characteristics, job prospects in the community, and such other factors as the department deems relevant. (IA 871-24.22 (96) f. Administrative Code)
• Michigan
The claimant has registered for work and has continued to report in accordance with unemployment agency rules and is actively engaged in seeking work. Except for a period of disqualification, the requirement that the claimant shall seek work may be waived by the unemployment insurance agency if it finds that suitable work is unavailable both in the locality where the individual resides and in those localities in which the individual has earned wages during or after the base period. An otherwise eligible individual shall not be ineligible for benefits because he or she is participating in training with the approval of the unemployment agency. (M.C.L.A. 421.28)
• Minnesota
An applicant may be eligible to receive unemployment benefits for any week if the applicant was actively seeking suitable employment. “Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area. Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not “actively seeking suitable employment." (M.S.A. s. 268.085 Statutes Annotated)
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Registration for Work Requirements
• Illinois
A claimant must register with the Illinois Employment Service unless otherwise instructed by the local office. There are ten circumstances in which a claimant will not be required to register with the Illinois Employment Service (56 Il. Adm. Code 2865.100)
An unemployed individual shall be eligible to receive benefits with respect to any week only if he or she has registered for work at and thereafter, continues to report at an employment office in accordance with such regulations as may be prescribed. (820 ILCS 405/500 Compiled Statutes)
• Iowa
Unemployed persons must report in person to the nearest workforce development center and register for work. (IA 871-24.2 (96) Administrative Code)
An unemployed individual is eligible to receive benefits with respect to any week only if the department finds that the individual has registered for work at, and thereafter, continues to report to an employment office in accordance with regulations as the department prescribes. (I.C.A. s. 96.4 Code)
• Michigan
A claimant shall register for work as instructed by the agency and fully and accurately supply information as to the claimant's past work experience and training and other personal data as may be necessary to assure that the claimant is considered for referral to any available suitable work. (Mich. Admin. Code R. 421.208)
Unemployed workers must register and create a profile on www.mitalenet.org and report in person to verify their registration to any Michigan Works! Agency Service Center no later than three (3) business days before their first contact to file a claim. Claimants must retain verification form as proof of registration of work for one year. (Fact sheet #76 Work Registration Needed for Jobless Benefits)
• Minnesota
An applicant may be eligible to receive unemployment insurance benefits for any week if the applicant was available for suitable employment. (M.S.A. s. 268.085 Statutes Annotated)
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18. Contact Name
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19. Contact Phone Number
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Janell Knutson
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(608) 266-1639
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