Wisconsin Legislature: SB708, s. 6

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

SB708,8,42 16.27 (5) Eligibility. (intro.) Subject to the requirements of subs. (4) (b) and
3(8) and except as provided in sub. (5m), the following shall receive low-income energy
4assistance under this section:

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

SB708,8,96 16.27 (5m) Limitations on eligibility. (a) 1. Except as provided in subd. 2, a
7household with assets that exceed $2,000 in combined equity value or with a vehicle
8having an equity value of $10,000 or greater shall not be eligible for low-income
9energy assistance under this section.

SB708,8,1110 2. Subdivision 1. does not apply if any individual member of the household is
11disabled, as defined in s. 49.468 (1) (a) 1., or is aged 62 or older.

SB708,8,2012 (b) If the department of administration determines it may not implement the
13limitation under par. (a) 1. without a waiver from the federal department of health
14and human services and that such a waiver may be requested under federal law, the
15authority shall request a waiver from the secretary of the federal department of
16health and human services. If a waiver that is consistent with par. (a) 1. is granted
17and in effect, the department of administration shall implement the limitation on
18eligibility under par. (a) 1. If a waiver is required, the department of administration
19may not implement the limitation on eligibility under par. (a) 1. unless a waiver is
20granted and in effect.

SB708, s. 3 21Section 3. 36.11 (56) of the statutes is created to read:

SB708,9,4

136.11 (56) Scholarships. The board may not award a scholarship that is based
2in whole or in part on financial need to any student under the age of 22 who is a
3dependent of his or her parents unless the board's calculation of financial need
4includes consideration of the income and assets of both of the student's parents.

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

SB708,9,96 39.435 (4) (a) The board shall award grants under this section based on a
7formula that accounts for expected parental and student contributions and that,
8except as provided in par. (b), is consistent with generally accepted definitions and
9nationally approved needs analysis methodology.

SB708, s. 5 10Section 5. 39.435 (4) (b) of the statutes is created to read:

SB708,9,1411 39.435 (4) (b) In determining the expected parental contribution for a student
12under 22 years of age who is a dependent of his or her parents, the board shall include
13in the parental income and assets that are available for that contribution the income
14and assets of both of the student's parents.

SB708, s. 6 15Section 6. 39.44 (3) (a) of the statutes is amended to read:

SB708,9,1816 39.44 (3) (a) Award grants to eligible students on the basis of financial need,
17as determined by the board, using the needs analysis methodology used under s.
1839.435.

SB708, s. 7 19Section 7. 49.148 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
20repealed.

SB708, s. 8 21Section 8. 49.155 (5) of the statutes is amended to read:

SB708,9,2522 49.155 (5) Liability for payment. An individual is liable for the percentage of
23the cost of the child care specified by the department in a printed copayment
24schedule, except that the department shall require a minimum copayment of $2 per
25hour of child care per child. An individual who is under the age of 20 and is attending

1high school or participating in a course of study meeting the standards established
2under s. 115.29 (4) for the granting of a declaration of equivalency to high school
3graduation may not be determined liable for more than the minimum copayment
4amount for the type of child care received and the number of children receiving child
5care.

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

SB708,10,98 49.155 (6g) (a) 2. Except as provided in subd. 3. and subject to subd. 5., the
9department shall authorize no more than 12 hours of child care per day per child.

SB708, s. 10 10Section 10. 49.155 (6g) (a) 3. of the statutes, as created by 2009 Wisconsin Act
1128, is amended to read:

SB708,10,1512 49.155 (6g) (a) 3. The Subject to subd. 5., department may authorize more than
1312 hours, not exceeding 16 hours, of child care per day for a child whose parent
14provides written documentation of work or transportation requirements that exceed
1512 hours in a day.

SB708, s. 11 16Section 11. 49.155 (6g) (a) 5. of the statutes is created to read:

SB708,10,1817 49.155 (6g) (a) 5. The department may not authorize more than 40 hours of
18child care per week for a child.

SB708, s. 12 19Section 12. 49.471 (11c) of the statutes is created to read:

SB708,11,320 49.471 (11c) Deductible and coinsurance. Notwithstanding subs. (10) and
21(11), the department shall require an annual deductible of $500 per family for
22services provided under BadgerCare Plus and coinsurance of at least 5 percent of the
23cost of services received after the deductible has been paid. If the department
24determines that it needs a waiver to require the deductible and coinsurance
25payments under this subsection, the department shall request a waiver from the

1secretary of the federal department of health and human services and may not
2impose the deductible and coinsurance requirements under this subsection unless
3the waiver is granted and in effect.

SB708, s. 13 4Section 13. 49.79 (1) (a) of the statutes is repealed.

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

SB708, s. 15 6Section 15. 49.79 (7m) of the statutes is created to read:

SB708,11,137 49.79 (7m) Authorized foods. The department shall by rule specify foods that
8may be purchased with food stamp coupons. The department may not authorize soda
9water beverages, as defined in s. 97.29 (1) (i), or snack foods, such as potato chips or
10similar processed food products, to be purchased with food stamp coupons. The
11department shall require that food stamp coupons be used to purchase a
12lower-priced brand of a food item if similar food items are available in lower-priced
13and higher-priced brands.

SB708, s. 16 14Section 16. 49.79 (10) of the statutes is created to read:

SB708,11,2215 49.79 (10) Waiver for implementation. Notwithstanding sub. (7m) and s.
1649.795 (6m) and (8) (g), if the department determines that it may not implement the
17requirements under sub. (7m) or impose the penalty under s. 49.795 (8) (g) for a
18violation of s. 49.795 (6m) without a federal waiver, the department shall request a
19waiver from the secretary of the federal department of agriculture, if such a waiver
20may be requested under federal law, and may not implement the requirements under
21sub. (7m) or impose the penalty under s. 49.795 (8) (g) for a violation of s. 49.795 (6m)
22unless both of the following are satisfied:

SB708,11,2323 (a) The waiver may be requested under federal law.

SB708,11,2424 (b) The waiver is granted and in effect.

SB708, s. 17 25Section 17. 49.795 (6m) of the statutes is created to read:

SB708,12,4

149.795 (6m) No person may spend the night in the home of a member of a
2household certified as eligible for the food stamp program unless that person's
3income is considered in determining the eligibility of the household for the food
4stamp program.

SB708, s. 18 5Section 18. 49.795 (8) (a) (intro.) of the statutes is amended to read:

SB708,12,76 49.795 (8) (a) (intro.) For Except as provided in par. (g), for a first offense under
7this section:

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

SB708,12,109 49.795 (8) (b) (intro.) For Except as provided in par. (g), for a 2nd or subsequent
10offense under this section:

SB708, s. 20 11Section 20. 49.795 (8) (c) of the statutes is amended to read:

SB708,12,1412 49.795 (8) (c) For Except as provided in par. (g), for any offense under this
13section, if the value of the food coupons is $5,000 or more, a person who violates this
14section is guilty of a Class G felony.

SB708, s. 21 15Section 21. 49.795 (8) (g) of the statutes is created to read:

SB708,12,1716 49.795 (8) (g) Any person who violates sub. (6m) is guilty of a Class A
17misdemeanor and subject to the penalty under s. 939.51 (3) (a).

SB708, s. 22 18Section 22. 49.842 of the statutes is created to read:

SB708,12,19 1949.842 Drug testing for eligibility. (1) Definitions. In this section:

SB708,12,2120 (a) "Applicant" means an individual who applies for assistance under any
21assistance program under this chapter.

SB708,12,2522 (b) "Assistance program under this chapter" means any program administered
23by the department of health services or the department of children and families
24under this chapter under which the department administering the program provides
25services, benefits, or other assistance.

SB708,13,1

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

SB708,13,32 (d) "Recipient" means an individual who is receiving services, benefits, or other
3assistance under an assistance program under this chapter.

SB708,13,8 4(2) Drug test required. Notwithstanding any other eligibility requirements
5specified in this chapter, to the extent permitted under federal law, an applicant or
6a recipient shall, as a condition of eligibility or continued eligibility, be required to
7submit to a test for the use of a controlled substance. If the test results are positive,
8the applicant or recipient shall be ineligible for any assistance program.

SB708, s. 23 9Section 23. 66.1204 of the statutes is created to read:

SB708,13,13 1066.1204 Limitations on eligibility. (1) (a) In its role under 42 USC 1437f
11as a public housing agency, as defined in 24 CFR 982.4 (b), an authority may not
12provide assistance payments to any person unless the person satisfies one of the
13following:

SB708,13,1414 1. The person is disabled, as defined in s. 49.468 (1) (a) 1.

SB708,13,1515 2. The person is age 62 or older.

SB708,13,1916 (b) An authority shall ensure that all of the following requirements are
17satisfied in connection with housing or housing assistance provided directly or
18indirectly by the authority, or by a state public body with which it contracts, to any
19person of low income:

SB708,13,2520 1. Any housing provided to a person of low income shall be restricted to housing
21in which the square footage is less than 50 percent of the average square footage for
22a rental unit of average rental value in the county in which the person of low income
23resides. In order to satisfy the requirements of this subdivision, the authority may
24require that more than two unrelated persons of low income be housed in one housing
25unit.

SB708,14,4

12. a. Except as provided in subd. 2. b., no person or family with assets that
2exceed $2,000 in combined equity value or with a vehicle having an equity value of
3$10,000 or greater shall be eligible for housing or housing assistance under this
4subchapter.

SB708,14,65 b. Subdivision 2. a. does not apply to any person who is disabled, as defined in
6s. 49.468 (1) (a) 1., or is aged 62 or older.

SB708,14,127 3. a. Except as provided in subd. 3. b., no adult, as defined in s. 48.02 (1d), may
8spend the night in the home of any person of low income who receives housing or
9housing assistance in or from any project or program under this subchapter if the
10income of that adult was not considered in determining the eligibility of the person
11to receive housing or housing assistance. Any person who violates this subd. 3. a. is
12guilty of a Class A misdemeanor and subject to the penalty under s. 939.51 (3) (a).

SB708,14,1413 b. Subdivision 3. a. does not apply to any person who is disabled, as defined in
14s. 49.468 (1) (a) 1., or is aged 62 or older.

SB708,14,22 15(2) If an authority determines it may not implement the limitations on
16eligibility and housing under sub. (1) or impose the penalty under sub. (1) (b) 3. a.
17without a waiver from the federal department of housing and urban development
18and that such a waiver may be requested under federal law, the authority shall
19request a waiver. If a waiver that is consistent with sub. (1) is granted and in effect,
20an authority shall implement the limitations on eligibility and housing under sub.
21(1). An authority may not implement any limitation under sub. (1) for which a waiver
22is required unless a waiver as to that limitation is granted and in effect.

SB708, s. 24 23Section 24. 71.05 (23) (b) 2. of the statutes is amended to read:

SB708,15,3

171.05 (23) (b) 2. An exemption of $700 $2,200 for each individual for whom the
2taxpayer is entitled to an exemption for the taxable year under section 151 (c) of the
3Internal Revenue Code.

SB708, s. 25 4Section 25. 71.07 (9e) (h) of the statutes is created to read:

SB708,15,65 71.07 (9e) (h) For taxable years beginning after December 31, 2010, no new
6claims for a credit under this subsection may be filed.

SB708, s. 26 7Section 26. 119.23 (2) (a) 1. of the statutes is repealed.

SB708, s. 27 8Section 27. 234.03 (intro.) of the statutes is amended to read:

SB708,15,14 9234.03 Powers of authority. (intro.) The Subject to the limitations on
10eligibility for projects or programs and housing benefitting persons and families of
11low and moderate income under s. 234.038, the authority shall have all the powers
12necessary or convenient to implement this chapter, including the following powers
13in connection with its projects or programs, in addition to all other powers granted
14by this chapter:

SB708, s. 28 15Section 28. 234.038 of the statutes is created to read:

SB708,15,20 16234.038 Limitations on eligibility for projects or programs and
17housing benefitting persons and families of low and moderate income. (1)
18(a) In its role under 42 USC 1437f as a public housing agency, as defined in 24 CFR
19982.4 (b), the authority may not provide assistance payments to any person unless
20the person satisfies one of the following:

SB708,15,2121 1. The person is disabled, as defined in s. 49.468 (1) (a) 1.

SB708,15,2222 2. The person is aged 62 or older.