Wisconsin Legislature: EmR1317

The permanent and emergency rules modify 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, emergency rule modification enables DWD to be able to adapt work registration and work search requirements as advances in technology make changes possible and necessary. Moreover, emergency 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 permanent and emergency rule amendments decrease and narrow the remaining waivers.

The permanent and emergency rule changes will streamline the ability of DWD to ensure that individuals receiving unemployment insurance benefits are actively seeking work to become reemployed. This emergency rule modification will also strengthen DWD's objective that those receiving unemployment insurance are engaging in activities that constitute a reasonable effort to obtain employment.

The permanent and emergency rule amendments clarify that DWD has the authority to request information from claimants to assist them in finding employment. More specifically, the amendments to ch. DWD 129 grant DWD the flexibility to implement improvements with respect to the claims filing procedures. DWD also plans to adopt a permanent rule to revise chs. DWD 126, 127, and 129.

Summary of, and comparison with, existing or proposed federal statutes and regulations

Unemployment insurance 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 503 (a) provides that the Secretary of Labor must find that the law of the state includes certain requirements. Specifically, 42 USC 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 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 must complete such services or there must be justifiable cause for the claimants failing to participate in such services.

Comparison with rules in adjacent states

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 rules 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)
Indiana	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)
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 must register for work at a workforce development center (IA 871-24.2 (96)) Administrative Code
Michigan	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))
Minnesota	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)

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)
Indiana	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)
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 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)

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 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)
Indiana	• 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)
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 form of verification 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 benefits for any week if the applicant was available for suitable employment. (M.S.A. s. 268.085 Statutes Annotated)

Summary of factual data and analytical methodologies

The permanent and emergency rules do not depend on any complex analysis of data. Instead, the changes to the rules represent common sense amendments that will assist unemployment insurance claimants to provide additional information to DWD in order that DWD may better assist them in returning to work.

Analysis and supporting document used to determine effect on small business or in preparation of an economic impact analysis

The permanent and emergency rule will have a positive impact on employers and unemployment insurance claimants.

Effect on Small Business

The permanent and emergency rules do not have any small business requirements but is expected to benefit all employers, including small business. First, the permanent and emergency rules are projected to result in more unemployment insurance claimants finding employment faster. 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 result in employers having to pay lower amounts of unemployment tax. Second, more unemployed individuals will be required to seek employment and those unemployed individuals who already were required to seek employment will likely be assisted better by DWD in applying for appropriate jobs. As a result, there are likely to be more and better job applications for employers to review as more employers seek to hire individuals.

Agency Contact Person

Questions and comments related to this rule may be directed to:

Janell Knutson

Department of Workforce Development

Division of Unemployment Insurance

P.O. Box 8942

Madison, WI 53708-8942

Telephone: (608) 266-1639

E-Mail: janell.knutson@dwd.wi.gov

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA-2050 (C04/2012)	Division of Executive Budget and Finance 101 East Wilson Street, 10th Floor P.O. Box 7864 Madison, WI 53707-7864 FAX: (608) 267-0372
EXISTING ADMINISTRATIVE RULES Fiscal Estimate & Economic Impact Analysis

1. Type of Estimate and Analysis
⍽ Repeal X Modification
2. Administrative Rule Chapter, Title and Number
DWD s. 126 (Work Registration), 127 (Work Search), and 129 (Benefit Claiming Procedures), unemployment insurance requirements for claimants.
3. Date Rule promulgated and/or revised; Date of most recent Evaluation
• 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.
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.
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.
5. Describe the Rule's Enforcement Provisions and Mechanisms
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.
6. Repealing or Modifying the Rule Will Impact the Following (Check All That Apply) X State's Economy X Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers X Small Businesses
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.
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.
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.
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.
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?
⍽ 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:
10. Fund Sources Affected			11. Chapter 20, Stats. Appropriations Affected
⍽ GPR X FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S			s. 20.115 (1) (q), Stats.
12. Fiscal Effect of Repealing or Modifying the Rule
⍽ No Fiscal Effect X Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Cost
13. Summary of Costs and Benefits of Repealing or Modifying the Rule
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.
14. Did the Agency prepare a Cost Benefit Analysis (if Yes, attach to form)
⍽ Yes X No
15. Long Range Implications of Repealing or Modifying the Rule
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.
16. Compare With Approaches Being Used by Federal Government
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.
17. Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
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)
• 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)
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)
18. Contact Name				19. Contact Phone Number
Janell Knutson				(608) 266-1639

This document can be made available in alternate formats to individuals with disabilities upon request.

Notice of Hearing

Workforce Development

Employment and Training, Chs. DWD 805-830

rulemaking_notices EmR1317 EmR1317

NOTICE IS HEREBY GIVEN that pursuant to section 227.24 (4), Stats., the Department of Workforce Development will hold a public hearing to review the emergency rule relating to workforce training grants under the Wisconsin Fast Forward program.

Hearing Information

Date: Tuesday, November 5, 2013
Time: 10:00 a.m.
Locations: G.E.F. 1 Building, B 105
201 East Washington Ave.
Madison, WI

Interested persons are invited to appear at the hearing and will be afforded the opportunity to make an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views, and suggested rewording in writing.

Visitors to the GEF 1 building are requested to enter through the left East Washington Avenue door and register with the customer service desk. The entrance is accessible via a ramp from the corner of Webster Street and East Washington Avenue. If you have special needs or circumstances regarding communication or accessibility at the hearing, please call (608) 266-9427 at least 10 days prior to the hearing date. Accommodations such as ASL interpreters, English translators, or materials in audiotape format will be made available on request to the fullest extent possible.

Written Comments and Deadline for Submission

Written comments may be submitted to Howard Bernstein, Office of Legal Counsel, Dept. of Workforce Development, P.O. Box 7946, Madison, WI 53707-7946 or by email to howard.bernstein@dwd.wisconsin.gov. The deadline for submission is November 8, 2013. Written comments will be given the same consideration as testimony presented at the hearing.

Copies of Rule

The proposed rules are available at the website http://adminrules.wisconsin.gov. This site allows you to view documents associated with this rule's promulgation, register to receive email notification whenever the Department posts new information about this rulemaking order, and submit comments and view comments by others during the public comment period. You may receive a paper or electronic copy of the rule by contacting Howard Bernstein at the addresses given above or by telephone at (608) 266-9427.

Analysis Prepared by the Department

Statutory authority

Sections 103.005 (1) and 106.27 (2g), Stats.

Statute interpreted

Section 106.27, Stats.

Explanation of agency authority

2013 Wisconsin Act 9 creates a program in the Department of Workforce Development (DWD) for the development and implementation of workforce training grants to be used for the training of unemployed and underemployed workers in this state or for the training of incumbent employees of businesses in this state.

Act 9 mandates that grantees report to DWD regarding how grant money was used and the outcomes achieved, and requires DWD to promulgate rules prescribing the information to be contained in these reports. It also requires DWD to create grant application forms, procedures, and criteria, and permits DWD to audit and inspect the records of grantees.

Summary of the proposed rule

This rule establishes the general criteria, procedures, requirements and conditions for the award of Wisconsin Fast Forward workforce training grants. It allows for grant applications from any public or private organization, including an employer or an economic development agency or training provider that is working with an employer.

The rule provides for the solicitation of applications for grants in the form of Grant Program Announcements (GPAs). Each grant applicant will be asked to provide information about itself and a description of the its proposed training program, including the proposed program budget and the proposed matching funds to be provided by the applicant.

The proposed rule provides that grant applications shall receive a preliminary review to ensure that they meet the basic requirements of the GPA. Applications which satisfy this review shall then be evaluated and ranked in relation to a series of factors relating to the capability of the applicant, the specifics of the proposal, and the potential economic and workforce capacity impacts of the proposal. The Department may also consider factors such as underserved populations and geographic areas.

The rule establishes an overall procedure for awarding grants and guidelines for grant administration, the use of grant funds and the provision of matching funds by grantees. Each grantee will be required to report on the use and effect of the grant funds in terms of information on the number of trainees, the trainees that have completed the program, and whether trainees have obtained new employment with increased wages or increased hours of work.

Summary of analytical methodology

The rules of other public grant programs were reviewed as part of the process for developing this proposed rule. No other data or analysis was needed.

Comparison to federal law

The federal Workforce Investment Act of 1998 provides funding for employment and training programs to the state with the guidance of the State Council for Workforce Investment. Grant allocations go to 11 regional workforce development boards, which fund and supervise local programs. Programs for employment placement and retention, job training, and education-related training are delivered through the Wisconsin Job Centers.

Comparison with statutes and rules in adjacent states

Minnesota. The Minnesota Job Skills Partnership Program is a state grant program which links state businesses with colleges, technical colleges, and universities to provide skill development training to workers. Approximately 70% of the grants go to state manufacturers; the next most numerous category is health care industries. It is a financial match program in which employers provide approximately 2 dollars for every public dollar provided. Partnership grants are awarded in amounts up to $400,000. About 80% of the grants are awarded to Colleges and Technical Colleges within the Minnesota State Community and Technical College system.

Illinois. The Illinois Department of Commerce and Economic Opportunity, Office of Business Development, offers a grant program entitled Employer Training Investment Program. Grants may be awarded to individual businesses or to intermediary organizations operating multi-company training programs. The grants are intended to enable companies to remain competitive, expand into new markets or introduce more efficient technology. ETIP grants may reimburse Illinois companies for up to 50 percent of the eligible cost of training their employees. In fiscal year 2010 this program gave out 15 grants totaling $6.4 million ranging from $60,000 to $1.1 million.

Iowa. The Skilled Iowa Initiative offers assessments, certification programs and internships in cooperation with public schools, community colleges, and universities, to work with employers seeking to expand the number of available “middle-skill" workers.

Michigan. The Michigan Industry Cluster Approach strategy focuses on five industry clusters (agriculture, energy, healthcare, information technology, and manufacturing) and works with employers to identify industry demand and vacancies, and provide input into the design of educational program offerings and skills requirements. The state's policy is to aligns services and programs with the identified needs for workers and skills. Programs are listed on Michigan's “WIA Eligible Training Provider List" based on input from employers.

Analysis used to determine effect on small business

The analysis is based upon the text of 2013 Wisconsin Act 9 and the proposed rule.

Effect on Small Business

The proposed rule has no effect on a small business that does not apply for a workforce training grant. Any business that chooses to apply for a grant, with or without partners, will have to comply with the administration and reporting requirements of the rule and the grant agreement.

Agency Contact for Program Issues

Dennis C. Schuh, Program Manager

DWD Office of Skills Development

P.O. Box 7946

Madison, WI 53707

(608) 267-3803

dennisc.schuh@dwd.wisconsin.gov

Agency Contact for Rulemaking Issues

Howard Bernstein, DWD Legal Counsel

P.O. Box 7946

Madison, WI 53707

(608) 266-9427

howard.bernstein@dwd.wisconsin.gov

STATE OF WISCONSIN DOA 2049 (R 07/2011) ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chapter DWD 801
Subject
Workforce Training Grants under s. 106.27 (2g), Stats.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
⍽ GPR ⍽FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		⍽ Increase Costs ⍽ Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
⍽ State's Economy ⍽ Local Government Units		⍽ Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
The proposed rule implements the requirement in s. 106.27(2g), Stats., that DWD promulgate rules prescribing procedures and criteria for awarding grants and the information that must be contained in the reports that are required from the grantees.
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)
The proposed rule does not create any costs in the administration of the workforce training grants program that are independent of the fiscal effect of 2013 Wisconsin Act 9 (2013 Assembly Bill 14), which created the program. A copy of the fiscal estimate for AB 14/Act 9 is attached.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
The rule simply carries out the instructions of the statute.
Long Range Implications of Implementing the Rule
None distinct from the statute.
Compare With Approaches Being Used by Federal Government
The rule analysis contains a comparison to the federal Workforce Investment Act.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
These comparisons are also in the rule analysis.
Name and Phone Number of Contact Person
Howard Bernstein, Legal Counsel, DWD (608) 266-9427

						2013 Session
						LRB or Bill No./Adm. Rule No.
ĺ ORIGINAL ⍽ UPDATED						DWD 801
FISCAL ESTIMATE ⍽ CORRECTED ⍽ SUPPLEMENTAL DOA-2048 N(R03/97)						Amendment No. if Applicable
Subject Wisconsin Fast Forward Workforce Training Grants
Fiscal Effect State: ĺ No State Fiscal Effect
Check columns below only if bill makes a direct appropriation					⍽ Increase Costs - May be possible to Absorb
or affects a sum sufficient appropriation.					Within Agency's Budget ⍽ Yes ⍽ No

⍽ Increase Existing Appropriation ⍽ Increase Existing Revenues
⍽ Decrease Existing Appropriation ⍽ Decrease Existing Revenues					⍽ Decrease Costs
⍽ Create New Appropriation
	Local: ĺ No local government costs
1.	⍽ Increase Costs	3. ⍽ Increase Revenues			5. Types of Local Governmental Units Affected:
	⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory			⍽ Towns ⍽ Villages ⍽ Cities
2.	Decrease Costs	4. ⍽ Decrease Revenues			⍽ Counties ⍽ Others _____
	⍽ Permissive ⍽ Mandatory	⍽ Permissive ⍽ Mandatory			⍽ School Districts WTCS Districts
Fund Sources Affected ⍽ GPR ⍽ FED ⍽ PRO ⍽PRS ⍽ SEG ⍽ SEG-S				Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate
The proposed rule does not create any costs in the administration of the Wisconsin Fast Forward workforce training grants program that are independent of the fiscal effect of 2013 Wisconsin Act 9 (2013 Assembly Bill 14), which created the program. A copy of the fiscal estimate for AB 14/Act 9 is attached. Impact on businesses: A business is not required to comply with the proposed rule unless it applies for a workforce training grant. A business that applies for and receives a workforce training grant will be required to file reports to verify that it has incurred expenses that are allowable and reimbursable under the grant, and it will also be required to file reports documenting the results of the grant in terms of employee participation and improvement in qualifications.
Long-Range Fiscal Implications
None


Agency/Prepared by: (Name & Phone No.)			Authorized Signature/Telephone No.				Date
DWD/Howard Bernstein (608) 266-9427