LRB-1680/1
TJD&MPG:amn&kjf
2017 - 2018 LEGISLATURE
February 22, 2018 - Introduced by Representative Zepnick. Referred to Committee
on State Affairs.
AB973,1,3
1An Act to create 20.435 (4) (y), 20.435 (4) (yg), 25.17 (1) (xj) and 25.765 of the
2statutes;
relating to: universal basic income program and making
3appropriations.
Analysis by the Legislative Reference Bureau
This bill requires the Department of Health Services to create a universal basic
income program to provide a cash benefit to individuals whose earned income
through employment is less than the state's per capita personal income. The bill
requires DHS and the departments of children and families and administration to
submit waiver requests to the federal government to use the benefits paid by the
federal government under the Wisconsin Works and Wisconsin Shares program and
FoodShare, known as the food stamp program, and certain housing assistance
programs for the universal basic income benefit. Those federal benefit moneys in
addition to the state administrative moneys expended for Wisconsin Works,
Wisconsin Shares, FoodShare, and the housing assistance programs are deposited
in the universal basic income fund for the universal basic income program. Also, if
the federal government approves the waivers for use of the Wisconsin Works,
Wisconsin Shares, FoodShare, and housing assistance benefit moneys, money saved
by eliminating the state-based earned income tax credit is also included in the
moneys to pay for the universal basic income program.
The benefit under the universal basic income program is a monthly amount
equal to the state's minimum wage per hour for 40 hours per week for those eligible
individuals earning equal to or less than the state's minimum wage per hour for 40
hours per week. For individuals earning more, the benefit decreases with an
increase in earned income such that an individual who earns income equal to the
state's per capita personal income receives no benefit from the universal basic income
program. To be eligible for the universal basic income benefit, an individual must
have verifiable earned income from full-time, part-time, or intermittent
employment, be receiving unemployment compensation benefits, or be unable to
work due to a verified disability. Full-time students and members of the military on
active duty are not eligible for the universal basic income benefit.
For further information see the state 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:
AB973,1
1Section 1
. 20.435 (4) (y) of the statutes is created to read:
AB973,2,52
20.435
(4) (y)
Universal basic income fund; administration. From the
3universal basic income fund, biennially, the amounts in the schedule for
4administration of the universal basic income program as described in 2017
5Wisconsin Act .... (this act), section 5 (1).
AB973,2
6Section 2
. 20.435 (4) (yg) of the statutes is created to read:
AB973,2,97
20.435
(4) (yg)
Universal basic income fund; benefits. From the universal basic
8income fund, the amounts in the schedule for paying the universal basic income
9benefit as described in 2017 Wisconsin Act .... (this act), section 5 (1
).
AB973,3
10Section 3
. 25.17 (1) (xj) of the statutes is created to read:
AB973,2,1111
25.17
(1) (xj) Universal basic income fund (s. 25.765);
AB973,4
12Section 4
. 25.765 of the statutes is created to read:
AB973,2,15
1325.765 Universal basic income fund. There is created a separate
14nonlapsible trust fund designated as the universal basic income fund consisting of
15all of the following:
AB973,2,17
16(1) All federal moneys received as a result of waivers of federal law as described
17in 2017 Wisconsin Act .... (this act), section 5 (1) (b
).
AB973,3,4
1(2) All state moneys of the department of health services and the department
2of children and families determined to be expended for the administration of the
3Wisconsin Works and food stamp programs under 2017 Wisconsin Act .... (this act),
4section 5 (1) (b
) 3.
AB973,3,7
5(3) All state moneys of the department of administration determined to be
6expended for aids to individuals under 2017 Wisconsin Act .... (this act), section 5 (1)
7(b) 4
.
AB973,3,10
8(4) All moneys determined by the department of revenue to be saved by
9eliminating the state-based earned income tax credit under 2017 Wisconsin Act ....
10(this act), section 5 (1) (e
).
AB973,5
11Section
5
.
Nonstatutory provisions.
AB973,3,1212
(1)
Universal basic income program.
AB973,3,1613
(a) The department of health services shall develop a universal basic income
14program to provide a cash benefit to individuals in this state whose earned income
15through employment is less than the state's annual per capita personal income by
16pooling moneys from public assistance programs.
AB973,3,2417
(b) By January 1, 2019, subject to paragraph (c
), the departments of health
18services, children and families, and administration shall submit waiver requests of
19federal law to convert the benefits to individuals provided by the federal government
20and the state for the Wisconsin Works program under sections 49.141 to 49.161 of the
21statutes, the food stamp program under section 49.79 of the statutes, and the housing
22assistance programs under sections 16.301 to 16.315 of the statutes to a pool of
23moneys available to pay the universal basic income benefit. The waiver requests
24under this paragraph shall include all of the following:
AB973,4,7
11. To be eligible for the universal basic income benefit, an individual shall have
2verifiable earned income from full-time, part-time, or intermittent employment; be
3unable to work due to a disability as verified by the department of health services;
4or be receiving unemployment compensation benefits under ch. 108. An eligible
5individual may not be a full-time student or a member of the military on active duty.
6An eligible individual shall have a verifiable annual earned income that is less than
7the state's annual per capita personal income.
AB973,4,18
82. Enrollment for the universal basic income program is based on the filing of
9an employee's withholding allowance certificate or a wage and tax statement
10through a procedure developed by the department of health services in consultation
11with the department of revenue. An eligible individual described under subd. 1. who
12is not employed may enroll in the universal basic income program through a
13department of workforce development comprehensive job center. The department of
14health services in consultation with the department of revenue shall establish a
15procedure to verify the income of an individual who would be eligible for the
16universal basic income program and, if necessary, a method of reconciling through
17the use of tax returns for an individual who is determined to exceed the eligibility
18limit.
AB973,4,23
193. The department of health services and the department of children and
20families shall determine the amount of state moneys expended in the previous fiscal
21year for administration of the Wisconsin Works and food stamp programs and shall
22allocate all of the state moneys expended for administration to be used for the
23universal basic income program.
AB973,5,2
244. The department of administration shall determine the amount of state
25moneys expended in the previous fiscal year in aids to individuals under sections
116.301 to 16.315 of the statutes and shall allocate all of the state moneys expended
2for those aids to individuals to be used for the universal basic income program.
AB973,5,5
35. Under the universal basic income program, the department of health
4services shall pay a universal basic income benefit to eligible individuals such that
5an eligible individual receives one of the following:
AB973,5,8
6a. For an eligible individual who earns per month an amount that is less than
7than the state's minimum wage per hour for 40 hours per week, a monthly benefit
8equal to the state's minimum wage per hour for 40 hours per week.
AB973,5,14
9b. For an eligible individual who earns per month an amount equal to or more
10than the state's minimum wage per hour for 40 hours per week, a benefit amount
11beginning at the amount under subdivision 5
. a. and decreasing with an increase in
12an individual's earned income until the individual's annual earned income is equal
13to the state's annual per capita personal income, at which point the individual
14receives no benefit from the universal basic income program.
AB973,5,19
156. The department of health services in collaboration with the department of
16revenue shall obtain information to make calculations of the state's per capita
17personal income and shall calculate the amount of the universal basic income benefit
18in accordance with subdivision 5
. The department of health services and department
19of revenue shall update the calculations quarterly.
AB973,5,22
207. The department of health services shall pay the universal basic income
21benefit to an eligible individual by direct deposit into an eligible individual's
22checking or savings account at a bank or credit union.
AB973,6,2
238. The department of health services shall make every effort in creating the
24universal basic income program to ensure that the payment of the benefit will not
25decrease benefits under or effect eligibility for the federal social security disability
1insurance program for those individuals who are eligible for the federal social
2security disability insurance program.
AB973,6,83
(c) The department of health services shall determine whether to provide
4benefits for individuals who are elderly, blind, or disabled through the program
5under section 49.79 of the statutes or through a new state-based program to provide
6food benefits to those individuals. The department of health services shall
7incorporate the determination under this paragraph into the waiver request under
8paragraph (b).
AB973,6,139
(d) If the federal government approves the waivers requested under paragraph
10(b), each department shall include in its 2021-23 biennial budget request any
11proposed statutory changes necessary to conform the statutes to the approved waiver
12and to implement the universal basic income program on the effective date of the
132021-23 biennial budget act.
AB973,6,1814
(e) If the federal government approves the waivers requested under paragraph
15(b), the department of revenue shall include in its 2021-23 biennial budget request
16a proposal to eliminate the state-based earned income tax credit under section 71.07
17(9e) of the statutes for the purpose of incorporating the moneys saved by not offering
18the credit into the pool of moneys available for the universal basic income program.
AB973,6
19Section 6
.
Effective dates. This act takes effect on the day after publication,
20except as follows:
AB973,6,2421
(1)
Universal basic income fund; appropriations. The treatment of sections
2220.435 (4) (y) and (yg), 25.17 (1) (xj), and 25.765 of the statutes takes effect on July
231, 2021, or on the 2nd day after publication of the 2021-23 biennial budget act,
24whichever is later.
