Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1170 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1170
5	5	March 22, 2024 - Introduced by Representatives BARE, GOYKE, BALDEH, C.
6	6	ANDERSON, CONLEY, CONSIDINE, EMERSON, JACOBSON, JOERS, OHNSTAD, PALMERI,
7	7	RATCLIFF, SHANKLAND, SINICKI, SNODGRASS, STUBBS and SUBECK, cosponsored
8	8	by Senators HESSELBEIN, AGARD, CARPENTER, L. JOHNSON, LARSON, ROYS and
9	9	SPREITZER. Referred to Committee on State Affairs.
10	10	AN ACT to amend 16.705 (9), 71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34
11	11	(1k) (g) and 71.45 (2) (a) 10.; and to create 14.57, 14.69, 20.517, 20.923 (4) (c)
12	12	7., 25.52, 71.07 (4s), 71.07 (4w), 71.10 (4) (ct) and (cu), 71.28 (4s), 71.28 (4w),
13	13	71.30 (3) (ct) and (cu), 71.47 (4s), 71.47 (4w), 71.49 (1) (ct) and (cu) and 230.08
14	14	(2) (en) of the statutes; relating to: creating WisEARNS and making an
15	15	appropriation.
16	16	Analysis by the Legislative Reference Bureau
17	17	WisEARNS retirement savings program
18	18	This bill creates a program called “WisEARNS” to provide a defined
19	19	contribution retirement savings plan for employees of private employers in this state
20	20	that do not offer an employer-sponsored retirement plan or that do not offer such a
21	21	plan to all employees. A defined contribution retirement savings plan is one that
22	22	pays retirement benefits based on an individual's account balance, rather than a
23	23	prescribed formula.
24	24	The bill creates a WisEARNS Board that is attached to the Office of the State
25	25	Treasurer. Under the bill, the board consists of the following nine members: the state
26	26	treasurer or his or her designee; the secretary of financial institutions or his or her
27	27	designee; two members appointed by the governor; two members appointed,
28	28	respectively, by the speaker of the assembly and president of the senate; one member
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36	36	ASSEMBLY BILL 1170
37	37	appointed by the state treasurer; one member appointed by the State of Wisconsin
38	38	Investment Board; and one member appointed by the other members. The bill
39	39	requires certain members to possess specified attributes or experience, and all
40	40	members serve four-year terms.
41	41	Under the bill, the state treasurer recommends a candidate for executive
42	42	director of the plan to the board, with the board approving the executive director. The
43	43	executive director serves outside the classified service and appoints staff outside the
44	44	classified service. The executive director serves at the pleasure of the board.
45	45	Under the bill, the board is required to establish the savings plan under which
46	46	employees may contribute to retirement savings accounts through payroll
47	47	deductions. Before establishing the plan, the board must conduct a legal analysis of
48	48	the applicability of the Internal Revenue Code and the Employee Retirement Income
49	49	Security Act of 1974 to the proposed plan, and must issue a request for information
50	50	from prospective vendors of a variety of defined-contribution retirement accounts
51	51	authorized under the Internal Revenue Code.
52	52	Under the bill, the default account type is a Roth IRA. The bill requires the
53	53	board to design the plan and contract with third-party investment administrators
54	54	to operate the plan. Among other requirements, the plan must do at least all of the
55	55	following: 1) require automatic participation by private employers in this state; 2)
56	56	require automatic enrollment for employees, but allow employees to opt out before
57	57	any payroll deduction is made; 3) prohibit employer contributions to employee
58	58	retirement accounts; and 4) allow an employee to roll over the amounts in an account
59	59	to a different IRS-qualified retirement account.
60	60	Also under the bill, unless the employee directs otherwise, during the
61	61	employee's first year of enrollment in the plan, the employer must make a payroll
62	62	deduction each pay period at a rate of 5 percent of the employee's gross wages, with
63	63	this rate increasing by 1 percent per year until the rate is the maximum rate allowed
64	64	under the Internal Revenue Code. Under the plan, the eligible employee must have
65	65	certain investment options within each account type, including a stable value or
66	66	capital preservation fund and a target date index fund or age-based fund. An eligible
67	67	employee's first $400 of contributions must be deposited in a savings account that is
68	68	not a retirement savings account, and thereafter, unless the employee selects a
69	69	different investment option, the employee's contributions must be deposited in a
70	70	target date index fund or age-based fund. An employee must be allowed to opt out
71	71	of this provision before the first $400 is deposited. The bill requires the board to
72	72	establish a policy for emergency withdrawals from a WisEARNS savings account
73	73	that is not a retirement savings account.
74	74	Under current law, DOA is authorized to purchase contractual services for most
75	75	bodies of state government. Under the bill, the board is exempted from some of the
76	76	requirements of contracting through DOA and instead must do all of the following
77	77	before awarding the contract: 1) conduct a cost-benefit analysis of contracting with
78	78	different vendors; 2) review and ensure the independence of the vendor and the
79	79	vendor's employees; and 3) require proof of background checks of the vendor and the
80	80	vendor's employees. The bill also requires the board to maintain a list of any vendor - 3 -2023 - 2024 Legislature
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83	83	ASSEMBLY BILL 1170
84	84	or party to the contract that violates the contract or requirements of the law, and to
85	85	provide that list to DOA for inclusion on the ineligible list for state contracts.
86	86	Tax credits for retirement plan startup costs and automatic enrollment
87	87	The bill creates two income and franchise tax credits that may be claimed by
88	88	small businesses that have 100 or fewer employees who received at least $5,000 in
89	89	compensation during the preceding year. Both credits are based on similar federal
90	90	tax credits. The first credit may be claimed by small businesses for the costs of
91	91	setting up and administering a retirement plan and educating employees about the
92	92	plan. The credit is 50 percent of the costs, limited to the greater of $500 or the lesser
93	93	of $5,000 or $250 multiplied by the number of non-highly compensated employees
94	94	who are eligible to participate in the plan. The credit may be claimed for three
95	95	consecutive years and may be not be claimed for any costs that were deducted under
96	96	federal law. The second credit may be claimed by small businesses that provide for
97	97	automatic enrollment in their retirement plans. The credit is $500 and may be
98	98	claimed for three consecutive years, beginning with the year in which the small
99	99	business first provides for automatic enrollment.
100	100	For further information see the state fiscal estimate, which will be printed as
101	101	an appendix to this bill.
102	102	The people of the state of Wisconsin, represented in senate and assembly, do
103	103	enact as follows:
104	104	SECTION 1. 14.57 of the statutes is created to read:
105	105	14.57 Same; attached boards.
106	106	(1) WISEARNS BOARD. There is created a WisEARNS board that is attached
107	107	to the state treasurer under s. 15.03. Of the members appointed under pars. (a) to
108	108	(e), at least one must have experience in the field of investments, at least one must
109	109	have experience as the owner of a business that employs between 5 and 50 people,
110	110	and at least one must be an employee who is not eligible for or does not have access
111	111	to an employer-sponsored retirement plan. The board shall consist of the following
112	112	members appointed for 4-year terms:
113	113	(a) The state treasurer or his or her designee.
114	114	(b) The secretary of financial institutions or his or her designee.
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127	127	SECTION 1 ASSEMBLY BILL 1170
128	128	(c) One member who has a favorable reputation for skill, knowledge, and
129	129	experience in the field of retirement saving and investments, appointed by the
130	130	governor.
131	131	(d) One member who has a favorable reputation for skill, knowledge, and
132	132	experience relating to small business, appointed by the governor.
133	133	(e) One member who is a representative of an association representing
134	134	employees or who has a favorable reputation for skill, knowledge, and experience in
135	135	the interests of employees in retirement saving, appointed by the speaker of the
136	136	assembly.
137	137	(f) One member who has a favorable reputation for skill, knowledge, and
138	138	experience in the interests of employers in retirement saving, appointed by the
139	139	president of the senate.
140	140	(g) One member who has a favorable reputation for skill, knowledge, and
141	141	experience in retirement investment products or retirement plan designs, appointed
142	142	by the state treasurer.
143	143	(h) One member appointed by the investment board.
144	144	(i) One member appointed, notwithstanding s. 15.07 (4), by a majority vote of
145	145	all of the members identified in pars. (a) to (h).
146	146	(2) MEMBERSHIP PROHIBITED. No individual appointed under sub. (1) (a) to (h)
147	147	may be a dealer or broker in securities, or be employed by an entity that is primarily
148	148	a dealer or broker in securities, and any member who accepts such employment shall
149	149	vacate his or her membership.
150	150	SECTION 2. 14.69 of the statutes is created to read:
151	151	14.69 WisEARNS program. (1) DEFINITIONS. In this section:
152	152	(a) “Board" means the WisEARNS board.
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180	180	SECTION 2
181	181	ASSEMBLY BILL 1170
182	182	(b) “Earnings” means all remuneration for employment or services provided to
183	183	an individual in this state, including salary, fees, bonuses, and including the cash
184	184	value of all remuneration paid in any medium other than cash.
185	185	(c) “Eligible employee” means an employee who is 18 years of age or older who
186	186	works in this state and whose private employer does not offer a retirement savings
187	187	plan or who is not eligible to participate in a qualified retirement savings plan offered
188	188	by his or her private employer.
189	189	(d) “Investment administrator” means the vendor selected under sub. (3) (e).
190	190	(e) “Plan" means the WisEARNS plan established under sub. (3).
191	191	(f) “Private employer” means any person engaging in any activity, enterprise
192	192	or business in this state that has conducted such activity, enterprise, or business in
193	193	this state for at least 2 years after the effective date of this paragraph .... [LRB inserts
194	194	date], and did not offer a retirement plan qualified under the Internal Revenue Code
195	195	during those 2 years.
196	196	(g) “WisEARNS retirement account" means a retirement savings account
197	197	established under the plan.
198	198	(h) “WisEARNS savings account” means a savings account established under
199	199	the plan that is not a retirement savings account.
200	200	(2) DUTIES OF TREASURER, EXECUTIVE DIRECTOR, AND BOARD. (a) The treasurer
201	201	shall recommend an executive director of the plan to the board, which shall appoint
202	202	an executive director outside the classified service, to serve at the pleasure of the
203	203	board. The executive director may not be a member of the board.
204	204	(b) The executive director appointed under par. (a) shall appoint staff for the
205	205	plan outside the classified service.
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231	231	SECTION 2 ASSEMBLY BILL 1170
232	232	(3) ESTABLISHMENT OF PLAN. The board shall establish, implement, and oversee
233	233	a plan that meets the requirements specified in sub. (8) that shall enroll eligible
234	234	employees beginning not more than 2 years after the effective date of this subsection
235	235	.... [LRB inserts date]. Before establishing and implementing the plan, the board
236	236	shall do all of the following:
237	237	(a) Conduct a legal analysis regarding the applicability of the federal Employee
238	238	Retirement Income Security Act of 1974, 29 USC 1001 to 1461, and the Internal
239	239	Revenue Code to the proposed plan.
240	240	(b) Enter into interagency agreements with the department of revenue, the
241	241	department of financial institutions, and the department of workforce development
242	242	to assist the board in providing outreach services to private employers and
243	243	employees.
244	244	(c) Prepare and issue a request for information from prospective vendors of
245	245	retirement savings accounts described in 26 USC 408 (a), individual retirement
246	246	annuities described in 26 USC 408 (b), individual retirement bonds, and individual
247	247	savings accounts to determine the feasibility of the proposed plan and the existence
248	248	of plans in the private market that meet the requirements set forth in sub. (8).
249	249	(d) Investigate ways of allowing individuals who are not automatically enrolled
250	250	in the plan to enroll in the plan and make contributions to retirement savings
251	251	accounts.
252	252	(e) Based on the results of the request for information under par. (c), prepare
253	253	and issue a request for proposals from prospective vendors and select a vendor. The
254	254	board shall determine the factors to be considered in selecting a vendor for the plan,
255	255	which shall include the ability of the vendor to meet all of the requirements of the
256	256	plan set forth in sub. (8) (a) to (z). Sections 16.705 and 16.75 do not apply to a contract
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284	284	SECTION 2
285	285	ASSEMBLY BILL 1170
286	286	entered into under this section. Before awarding a contract under this section, the
287	287	board shall do all of the following:
288	288	1. Conduct a cost-benefit analysis to identify and compare the total cost,
289	289	quality, and technical expertise of the vendors that submitted proposals.
290	290	2. Review the independence and relationship, if any, of the vendors that
291	291	submitted proposals to employees of the board and the disclosure of any former
292	292	employment of the vendor or employees of the vendor with the board, to minimize the
293	293	likelihood of selection of a vendor that provides or is likely to provide services to
294	294	industries, client groups, or individuals who are the object of state regulation or the
295	295	recipients of state funding to a degree that the vendor's independence would be
296	296	compromised.
297	297	3. If the vendor or employees of the vendor have access to federal tax
298	298	information received directly from the federal internal revenue service or from a
299	299	source that is authorized by the federal internal revenue service, for the performance
300	300	of services under the contract under this section, require proof of a background
301	301	investigation on each individual performing the services. Such a background check
302	302	shall meet the standards established by the federal internal revenue service under
303	303	26 USC 6103 (p) (4) (C).
304	304	(f) Ensure compliance by the plan with all applicable provisions of the Internal
305	305	Revenue Code and U.S. department of treasury regulations.
306	306	(5) INELIGIBLE VENDOR LIST. The board shall maintain a list of persons that are
307	307	or have been a party to a contract under this section that have violated a provision
308	308	of this section or a contract under this section. The board shall annually forward this
309	309	list to the department of administration for inclusion in the ineligible vendor list
310	310	under s. 16.705 (9).
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337	337	SECTION 2 ASSEMBLY BILL 1170
338	338	(6) POWERS OF BOARD. The board may do any of the following:
339	339	(a) Enter into contracts or other arrangements for any of the following services
340	340	as necessary for implementing and overseeing the plan and otherwise carrying out
341	341	the purposes of this section:
342	342	1. The services of financial institutions and depositories and of consultants,
343	343	accountants, attorneys, investment advisers, investment administrators, 3rd-party
344	344	administrators, and other professionals.
345	345	2. The services of other state agencies under interagency agreements under
346	346	sub. (3) (b).
347	347	(b) Solicit and accept contributions, gifts, grants, and bequests for the
348	348	WisEARNS plan administration trust fund or for any other purpose for which a
349	349	contribution, gift, grant, or bequest is made and received. Moneys received under
350	350	this paragraph shall be deposited in the WisEARNS plan administration trust fund.
351	351	(c) Enter into agreements with other governmental entities in this state or
352	352	outside this state, which maintain retirement savings programs similar to
353	353	WisEARNS, to collectively invest the assets of the plan to the extent allowed by
354	354	federal law to benefit retirement savings account holders participating in the plan
355	355	by achieving efficiencies designed to minimize costs for the plan and retirement
356	356	savings account holders participating in the plan.
357	357	(7) DUTIES OF BOARD. The board shall do all of the following:
358	358	(a) Promulgate rules for the administration of the plan.
359	359	(b) Collect application, account, or administrative fees to defray the costs of
360	360	administering the plan at the lowest cost possible. Fees collected under this
361	361	paragraph shall be deposited in the WisEARNS plan administration trust fund. Fees
362	362	under this paragraph may not be linked to the value of the trust fund.
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390	390	SECTION 2
391	391	ASSEMBLY BILL 1170
392	392	(c) Establish a policy for the investment of moneys contributed to a retirement
393	393	savings account, and direct the investment of such moneys in a manner that is
394	394	consistent with any investment restrictions established by the board. Those
395	395	investment restrictions shall be consistent with the objectives of the plan and with
396	396	the standard of responsibility specified in s. 25.15 (2).
397	397	(d) Evaluate the need for, and procure as needed, insurance to cover any
398	398	liabilities of the plan and to cover each member of the board for loss or liability
399	399	resulting from the board member's act or omission as a member of the board.
400	400	(e) Determine the eligibility of employers, employees, or individuals to
401	401	participate in the plan.
402	402	(f) Establish policies for emergency withdrawals from WisEARNS savings
403	403	accounts.
404	404	(g) Annually review the performance of vendors regarding, at a minimum,
405	405	investment returns, fees, and customer service, and publish results of the review on
406	406	the plan's Internet site.
407	407	(h) Exercise any other powers as may be necessary to oversee the plan and
408	408	otherwise carry out the purposes of this section.
409	409	(8) REQUIREMENTS FOR PLAN. The board shall design the plan so that it meets
410	410	all of the following requirements:
411	411	(a) The plan allows eligible individuals employed for compensation in this state
412	412	by a private employer in this state to contribute to WisEARNS accounts through
413	413	payroll deductions. The plan allows self-employed individuals with earnings in this
414	414	state to contribute to WisEARNS accounts.
415	415	(b) The plan requires all private employers in this state to withhold and remit
416	416	employee contributions to the plan through payroll deductions. If an employer offers
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443	443	SECTION 2 ASSEMBLY BILL 1170
444	444	a qualified retirement plan under the Internal Revenue Code, including a plan
445	445	qualified under section 401 (a) or (k), 403 (a) or (b), 408 (k), or 457 (b) of the Internal
446	446	Revenue Code, the employer does not need to withhold and remit employee
447	447	contributions for employees who are eligible to participate in the
448	448	employer-sponsored plan.
449	449	(c) Except as provided in par. (d), the plan provides that the default individual
450	450	retirement account is a Roth IRA account.
451	451	(d) If the plan offers options for account types other than a Roth IRA, the plan
452	452	allows an enrolled eligible employee to select any of these other account types for
453	453	investing contributions under the plan.
454	454	(e) The plan provides an eligible employee who is enrolled in the plan with
455	455	multiple investment options within each account type, which may include any of the
456	456	following investment options:
457	457	1. A stable value or capital preservation fund.
458	458	2. A target date index fund or age-based fund that automatically rebalances
459	459	asset allocations based on the eligible employee's age.
460	460	3. A low-cost fund focused on income generation.
461	461	4. A low-cost fund focused on asset growth.
462	462	5. A low-cost fund focused on balancing risk and return.
463	463	(f) The investment policy for the plan includes all of the following concepts:
464	464	1. Best practices in the industry for retirement savings vehicles.
465	465	2. The promotion of portability of retirement savings accounts.
466	466	3. The minimization of fees and expenses.
467	467	4. The maximization of possible income replacement, balanced with
468	468	appropriate levels of risk.
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496	496	SECTION 2
497	497	ASSEMBLY BILL 1170
498	498	(g) The plan requires the investment administrator to offer to each enrolled
499	499	eligible employee, before the employee makes his or her investment selections, a tool
500	500	allowing the employee to identify the employee's risk tolerance and projected
501	501	retirement date as an aid to the employee in selecting suitable investments under
502	502	the plan.
503	503	(h) The plan requires that the first $400 of an enrolled eligible employee's
504	504	contributions be deposited in a WisEARNS savings account and thereafter, unless
505	505	the employee selects a different investment option, the employee's contributions be
506	506	to a WisEARNS retirement account and deposited in a fund described in par. (e) 2.
507	507	The plan shall allow an employee to select a different investment option before the
508	508	first $400 is deposited in a WisEARNS retirement account. An employee shall be
509	509	allowed to withdraw the first $400 for emergency use from the employee' s
510	510	WisEARNS savings account, and contributions subsequent to the withdrawal shall
511	511	be deposited in the WisEARNS savings account until the amount in the employee's
512	512	WisEARNS savings account is restored to $400.
513	513	(i) Except as provided in par. (k), during an eligible employee's first year of
514	514	enrollment in the plan, the participating employer's payroll deduction each pay
515	515	period shall be at a rate of 5 percent of the employee's gross wages, and this deducted
516	516	amount shall be remitted to the investment administrator as the employee's account
517	517	contribution.
518	518	(j) Except as provided in par. (k), a participating employer shall increase the
519	519	payroll deduction rate under par. (i) by 1 percent per year until the payroll deduction
520	520	rate is the maximum allowed under the Internal Revenue Code.
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543	543	23 - 12 -2023 - 2024 Legislature LRB-5191/1
544	544	JK&MIM:cjs
545	545	SECTION 2 ASSEMBLY BILL 1170
546	546	(k) An enrolled eligible employee may elect a different payroll deduction rate
547	547	than that provided for in pars. (i) and (j), except that the rate may not be less than
548	548	1 percent or more than the maximum allowed under the Internal Revenue Code.
549	549	(L) The plan sets forth a process for enrollment of eligible employees in the
550	550	plan, which shall include all of the following processes:
551	551	1. Automatic enrollment of eligible employees in the plan.
552	552	2. Opting out of enrollment in the plan before any payroll deduction is made.
553	553	3. Opting out of enrollment in the plan at any time after a payroll deduction
554	554	is made.
555	555	4. Changing the payroll deduction rate from that provided for in pars. (i) and
556	556	(j)
557	557	(m) The plan provides a process for all of the following:
558	558	1. Employer withholding from employees' wages contributions to WisEARNS
559	559	accounts and remittance of those contributions to the investment administrator of
560	560	the plan.
561	561	2. Eligible employees' and self-employed individuals' nonpayroll contributions
562	562	to their WisEARNS retirement accounts.
563	563	3. Emergency withdrawals from WisEARNS savings accounts in accordance
564	564	with procedures established by the board under sub. (7) (f).
565	565	(n) The plan requires contributions to WisEARNS accounts to be deposited
566	566	directly with the investment administrator of the plan.
567	567	(o) The plan, to the greatest extent possible, uses existing employer and public
568	568	infrastructure to facilitate contributions to WisEARNS accounts and outreach to
569	569	employees and private employers.
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593	593	24 - 13 -2023 - 2024 Legislature
594	594	LRB-5191/1
595	595	JK&MIM:cjs
596	596	SECTION 2
597	597	ASSEMBLY BILL 1170
598	598	(p) The plan prohibits employer contribution to an employee WisEARNS
599	599	account.
600	600	(q) The plan requires the maintenance of separate records and accounting for
601	601	each WisEARNS account and provides for reports on the status of accounts to be
602	602	provided to plan participants at least once per quarter.
603	603	(r) The plan allows the owner of a WisEARNS retirement account to maintain
604	604	that account regardless of his or her place of employment and to roll over money from
605	605	that account to other retirement accounts as allowed under the Internal Revenue
606	606	Code.
607	607	(s) The plan provides for the pooling of WisEARNS retirement accounts for
608	608	investment purposes by the investment administrator of the plan.
609	609	(t) The plan is professionally managed in a way that keeps administrative costs
610	610	low. The plan shall allow the investment administrator of the plan to charge and
611	611	collect application, account, and administrative fees in an amount that does not
612	612	exceed an amount that is sufficient to defray the costs of administering the plan.
613	613	(u) The plan provides that the state and any employer participating in the plan
614	614	have no proprietary interest in an employee's contributions to a WisEARNS account
615	615	or in the earnings of such an account.
616	616	(v) The plan provides that the investment administrator of the plan is the
617	617	trustee of all contributions to a WisEARNS account and earnings on those
618	618	contributions.
619	619	(w) The plan does not impose any duties under the federal Employee
620	620	Retirement Income Security Act of 1974, 29 USC 1001 to 1461, on an employer and
621	621	does not expose any employer or the state, either as an employer or in the
622	622	administration of the plan, to any potential liability under that act.
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647	647	25 - 14 -2023 - 2024 Legislature LRB-5191/1
648	648	JK&MIM:cjs
649	649	SECTION 2 ASSEMBLY BILL 1170
650	650	(x) The plan provides a process for making withdrawals from an employee's
651	651	WisEARNS retirement account.
652	652	(y) The plan sets forth the requirements that an employer that offers a qualified
653	653	retirement plan described in par. (b) must meet in order to obtain an exemption from
654	654	the requirement under par. (b) that the employer withhold and remit employee
655	655	contributions to the plan through payroll deductions and a process for obtaining such
656	656	an exemption.
657	657	(z) The plan sets forth the contents and frequency of disclosures that the board
658	658	must make to employers, eligible employees and other individuals participating in
659	659	the plan. Those disclosures shall include all of the following:
660	660	1. A discussion of the benefits and risks associated with making contributions
661	661	to a retirement savings account.
662	662	2. Instructions on the process for making contributions to a WisEARNS
663	663	account, opting out of participation in the plan, and making withdrawals from a
664	664	WisEARNS account.
665	665	3. Instructions on how to obtain additional information about the plan.
666	666	4. A notice advising that employees should contact a financial or investment
667	667	adviser for financial or investment advice, that participating employers may not
668	668	provide financial or investment advice, and that participating employers are not
669	669	liable for financial or investment decisions made by an employee.
670	670	5. A notice advising that the plan is not an employer-sponsored retirement
671	671	savings plan.
672	672	6. A notice that a rate of interest or return on a WisEARNS retirement account,
673	673	and the payment of principal, interest, or a return on such an account, are not
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676	676	3
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697	697	24 - 15 -2023 - 2024 Legislature
698	698	LRB-5191/1
699	699	JK&MIM:cjs
700	700	SECTION 2
701	701	ASSEMBLY BILL 1170
702	702	guaranteed by the state and that the state may not be held liable for any loss incurred
703	703	by any person as a result of participating in the plan.
704	704	(9) CONSTRUCTION. Nothing in this section guarantees any rate of interest or
705	705	return on a WisEARNS retirement account or the payment of principal, interest, or
706	706	a return on such an account. The state may not be held liable for any loss incurred
707	707	by any person as a result of participating in the plan.
708	708	(10) CONFIDENTIALITY. All personal and financial information pertaining to the
709	709	owner or a beneficiary of a WisEARNS account is confidential and may not be
710	710	disclosed except as follows:
711	711	(a) As necessary to administer the plan, the tax laws of this state, and the
712	712	Internal Revenue Code.
713	713	(b) With the prior written consent of the subject of the information.
714	714	(11) LIABILITY FOR PRIVATE EMPLOYERS. No private employer is a fiduciary with
715	715	respect to the plan. No private employer is liable for any of the following with respect
716	716	to the plan or an eligible employee:
717	717	(a) An eligible employee's decision to participate in the plan.
718	718	(b) Investment decisions made by the board or an eligible employee who
719	719	participates in the plan.
720	720	(c) The administration or investment performance of the plan, including any
721	721	interest rate or other rate of return on any contribution or account balance.
722	722	(d) The plan design.
723	723	(e) An eligible employee's familiarity with and compliance with the applicable
724	724	provisions of the Internal Revenue Code and U.S. department of treasury
725	725	regulations related to individual retirement accounts.
726	726	1
727	727	2
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730	730	5
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749	749	24 - 16 -2023 - 2024 Legislature LRB-5191/1
750	750	JK&MIM:cjs
751	751	SECTION 2 ASSEMBLY BILL 1170
752	752	(f) Any loss, failure to realize any gain, or other adverse consequences,
753	753	including any adverse tax consequences or loss of favorable tax treatment, public
754	754	assistance, or other benefits, incurred by any eligible employee as a result of
755	755	participating in the plan.
756	756	(12) LIABILITY OF BOARD AND STATE. No cause of action of any nature may arise
757	757	against and no civil liability may be imposed upon a member of the board for any act
758	758	or omission in the performance of his or her powers and duties related to the plan,
759	759	unless the individual asserting liability proves that the act or omission constitutes
760	760	willful misconduct. No cause of action of any nature may arise against and no civil
761	761	liability may be imposed upon the state or an employee of the state for any act or
762	762	omission related to the powers and duties of the state or employee in the performance
763	763	of any powers or duties related to the plan unless the individual asserting liability
764	764	proves that the act or omission constitutes willful misconduct. No member of the
765	765	board, the state, board or commission of the state, appointee, or employee of the state
766	766	is liable for any of the following:
767	767	(a) An eligible employee's familiarity with and compliance with the applicable
768	768	provisions of the Internal Revenue Code and U.S. department of treasury
769	769	regulations related to individual retirement accounts.
770	770	(b) The interest rate or other rate of return, on an account balance or
771	771	investment performance.
772	772	(c) Any loss, failure to realize any gain, or other adverse consequences,
773	773	including any adverse tax consequences or loss of favorable tax treatment, public
774	774	assistance, or other benefits, incurred by any eligible employee as a result of
775	775	participating in the plan.
776	776	(d) The debts, contracts, and obligations of the plan or the board.
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801	801	25 - 17 -2023 - 2024 Legislature
802	802	LRB-5191/1
803	803	JK&MIM:cjs
804	804	SECTION 2
805	805	ASSEMBLY BILL 1170
806	806	(13) REPORTS. (a) By October 15 of each year, the board shall submit a report
807	807	of its activities to the governor and the appropriate standing committees of the
808	808	legislature under s. 13.172 (3). The report shall include information on the
809	809	performance of the plan and any recommended changes to the plan.
810	810	(b) By January 1, 2028, the board shall submit a report of its activities to the
811	811	governor and the appropriate standing committees of the legislature under s. 13.172
812	812	(3).
813	813	(14) STANDARD OF RESPONSIBILITY. Members of the board and any 3rd-party
814	814	administrators of the plan shall discharge their duties as fiduciaries with respect to
815	815	the trust fund under s. 25.52 for the interest of eligible employees who participate
816	816	in the plan as follows:
817	817	(a) To administer assets of the trust fund solely for the purpose of providing
818	818	benefits to eligible employees who are enrolled in the plan at a reasonable cost and
819	819	not for any other purpose.
820	820	(b) To manage the money and property of the trust fund with the care, skill,
821	821	prudence, and diligence under the circumstances then prevailing that a prudent
822	822	person acting in a similar capacity, with the same resources, and familiar with like
823	823	matters exercises in the conduct of an enterprise of a like character with like aims.
824	824	(15) ASSISTANCE. The office of the state treasurer shall provide the board with
825	825	any assistance necessary to carry out this section, including staff, equipment, and
826	826	office space.
827	827	SECTION 3. 16.705 (9) of the statutes is amended to read:
828	828	16.705 (9) The department shall maintain a list of persons that are or have
829	829	been a party to a contract with the state under this subchapter or s. 14.69 who have
830	830	violated a provision of this subchapter or a contract under this subchapter or s. 14.69.
831	831	1
832	832	2
833	833	3
834	834	4
835	835	5
836	836	6
837	837	7
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855	855	25 - 18 -2023 - 2024 Legislature LRB-5191/1
856	856	JK&MIM:cjs
857	857	SECTION 3 ASSEMBLY BILL 1170
858	858	The parties on the list are ineligible for state contracts and no state contract may be
859	859	awarded to a party on the ineligible list. The department may remove any party from
860	860	the ineligible list if the department determines that the party's practices comply with
861	861	this subchapter or s. 14.69 and provide adequate safeguards against future
862	862	violations of this subchapter or s. 14.69 or contracts under this subchapter or s. 14.69.
863	863	SECTION 4. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
864	864	the following amounts for the purposes indicated:
865	865	2023-24 2024-25
866	866	20.517 WisEARNS board
867	867	(1) WISEARNS PLAN
868	868	(a)Establishment and administra
869	869	tion of plan GPR B $200,000 $200,000
870	870	SECTION 5. 20.517 of the statutes is created to read:
871	871	20.517 WisEARNS. There is appropriated to the WisEARNS board for the
872	872	following programs:
873	873	(1) WISEARNS PLAN. (a) Establishment and administration of plan.
874	874	Biennially, the amounts in the schedule to establish and administer the plan under
875	875	s. 14.69.
876	876	(q) Board operating expenses; WisEARNS plan administration trust fund.
877	877	From the WisEARNS plan administration trust fund, all moneys deposited in that
878	878	fund under s. 14.69 (7) (b) for the operating expenses of the board.
879	879	(r) Gifts and grants; WisEARNS plan administration trust fund. From the
880	880	WisEARNS plan administration trust fund, all moneys received as contributions,
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902	902	22 - 19 -2023 - 2024 Legislature
903	903	LRB-5191/1
904	904	JK&MIM:cjs
905	905	SECTION 5
906	906	ASSEMBLY BILL 1170
907	907	gifts, grants, and bequests for that trust fund under s. 14.69 (6) (b) to carry out the
908	908	purposes for which made and received.
909	909	SECTION 6. 20.923 (4) (c) 7. of the statutes is created to read:
910	910	20.923 (4) (c) 7. State treasurer; WisEARNS board: executive director.
911	911	SECTION 7. 25.52 of the statutes is created to read:
912	912	25.52 WisEARNS plan administration trust fund. There is established a
913	913	separate nonlapsible trust fund designated as the WisEARNS plan administration
914	914	trust fund, to consist of all moneys deposited in that fund under s. 14.69 (6) (b) and
915	915	(7) (b).
916	916	SECTION 8. 71.05 (6) (a) 15. of the statutes is amended to read:
917	917	71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
918	918	(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (4s), (4w), (5e),
919	919	(5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership,
920	920	limited liability company, or tax-option corporation that has added that amount to
921	921	the partnership's, company's, or tax-option corporation's income under s. 71.21 (4)
922	922	or 71.34 (1k) (g).
923	923	SECTION 9. 71.07 (4s) of the statutes is created to read:
924	924	71.07 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
925	925	subsection:
926	926	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
927	927	Internal Revenue Code, that files a claim under this subsection.
928	928	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
929	929	Revenue Code.
930	930	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
931	931	Internal Revenue Code.
932	932	1
933	933	2
934	934	3
935	935	4
936	936	5
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956	956	25 - 20 -2023 - 2024 Legislature LRB-5191/1
957	957	JK&MIM:cjs
958	958	SECTION 9 ASSEMBLY BILL 1170
959	959	(b) Filing claims. Subject to the limitations provided in this subsection, a
960	960	claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
961	961	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
962	962	or incurred by the claimant during the taxable year.
963	963	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
964	964	may not exceed the greater of the following:
965	965	a. $500.
966	966	b. The lesser of $250 for each employee of the claimant who is not a highly
967	967	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
968	968	or $5,000.
969	969	2. The credit under this subsection may be claimed only for 3 consecutive
970	970	taxable years beginning with the first credit year.
971	971	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
972	972	to the credit under this subsection.
973	973	4. No credit may be claimed under this subsection for an amount that is
974	974	deducted under section 162 of the Internal Revenue Code.
975	975	5. A partnership, limited liability company, or tax-option corporation may not
976	976	claim the credit under this subsection, but the partners, members, and shareholders
977	977	may claim the credit based on the payments of the qualified startup costs by the
978	978	partnership, limited liability company, or tax-option corporation. The partnership,
979	979	limited liability company, or tax-option corporation shall calculate the amount of the
980	980	credit that may be claimed by each partner, member, or shareholder and shall
981	981	provide that information to each of them. The partners, members, and shareholders
982	982	may claim the credit in proportion to their ownership interests.
983	983	1
984	984	2
985	985	3
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1006	1006	24 - 21 -2023 - 2024 Legislature
1007	1007	LRB-5191/1
1008	1008	JK&MIM:cjs
1009	1009	SECTION 9
1010	1010	ASSEMBLY BILL 1170
1011	1011	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1012	1012	s. 71.28 (4), applies to the credit under this subsection.
1013	1013	SECTION 10. 71.07 (4w) of the statutes is created to read:
1014	1014	71.07 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1015	1015	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1016	1016	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1017	1017	arrangement in a qualified employer plan that is sponsored by the claimant and that
1018	1018	files a claim under this subsection.
1019	1019	2. “Eligible automatic contribution arrangement” has the meaning given in
1020	1020	section 414 (w) (3) of the Internal Revenue Code.
1021	1021	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1022	1022	the Internal Revenue Code.
1023	1023	(b) Filing claims. Subject to the limitations provided in this subsection, a
1024	1024	claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
1025	1025	amount of the tax, $500.
1026	1026	(c) Limitations. 1. The credit under this subsection may be claimed only for
1027	1027	3 consecutive taxable years beginning with the first taxable year for which the
1028	1028	claimant includes an eligible automatic contribution arrangement in a qualified
1029	1029	employer plan that is sponsored by the claimant, except that no credit may be
1030	1030	claimed in a taxable year if an eligible automatic contribution arrangement is not
1031	1031	included in the qualified employer plan for that taxable year.
1032	1032	2. A partnership, limited liability company, or tax-option corporation may not
1033	1033	claim the credit under this subsection, but the partners, members, and shareholders
1034	1034	may claim the credit based on the inclusion by the partnership, limited liability
1035	1035	company, or tax-option corporation of an eligible automatic contribution
1036	1036	1
1037	1037	2
1038	1038	3
1039	1039	4
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1060	1060	25 - 22 -2023 - 2024 Legislature LRB-5191/1
1061	1061	JK&MIM:cjs
1062	1062	SECTION 10 ASSEMBLY BILL 1170
1063	1063	arrangement in a qualified employer plan that is sponsored by the partnership,
1064	1064	limited liability company, or tax-option corporation. The partnership, limited
1065	1065	liability company, or tax-option corporation shall calculate the amount of the credit
1066	1066	that may be claimed by each partner, member, or shareholder and shall provide that
1067	1067	information to each of them. The partners, members, and shareholders may claim
1068	1068	the credit in proportion to their ownership interests.
1069	1069	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1070	1070	s. 71.28 (4), applies to the credit under this subsection.
1071	1071	SECTION 11. 71.10 (4) (ct) and (cu) of the statutes are created to read:
1072	1072	71.10 (4) (ct) Retirement plan startup costs tax credit under s. 71.07 (4s).
1073	1073	(cu) Auto-enrollment tax credit under s. 71.07 (4w).
1074	1074	SECTION 12. 71.21 (4) (a) of the statutes is amended to read:
1075	1075	71.21 (4) (a) The amount of the credits computed by a partnership under s.
1076	1076	71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
1077	1077	(4s), (4w), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
1078	1078	partners shall be added to the partnership's income.
1079	1079	SECTION 13. 71.26 (2) (a) 4. of the statutes is amended to read:
1080	1080	71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
1081	1081	(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (4s), (4w), (5e), (5g), (5i), (5j),
1082	1082	(5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
1083	1083	liability company, or tax-option corporation that has added that amount to the
1084	1084	partnership's, limited liability company's, or tax-option corporation's income under
1085	1085	s. 71.21 (4) or 71.34 (1k) (g).
1086	1086	SECTION 14. 71.28 (4s) of the statutes is created to read:
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1110	1110	24 - 23 -2023 - 2024 Legislature
1111	1111	LRB-5191/1
1112	1112	JK&MIM:cjs
1113	1113	SECTION 14
1114	1114	ASSEMBLY BILL 1170
1115	1115	71.28 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
1116	1116	subsection:
1117	1117	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
1118	1118	Internal Revenue Code, that files a claim under this subsection.
1119	1119	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
1120	1120	Revenue Code.
1121	1121	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
1122	1122	Internal Revenue Code.
1123	1123	(b) Filing claims. Subject to the limitations provided in this subsection, a
1124	1124	claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
1125	1125	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
1126	1126	or incurred by the claimant during the taxable year.
1127	1127	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
1128	1128	may not exceed the greater the following:
1129	1129	a. $500.
1130	1130	b. The lesser of $250 for each employee of the claimant who is not a highly
1131	1131	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
1132	1132	or $5,000.
1133	1133	2. The credit under this subsection may be claimed only for 3 consecutive
1134	1134	taxable years beginning with the first credit year.
1135	1135	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
1136	1136	to the credit under this subsection.
1137	1137	4. No credit may be claimed under this subsection for an amount that is
1138	1138	deducted under section 162 of the Internal Revenue Code.
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1163	1163	JK&MIM:cjs
1164	1164	SECTION 14 ASSEMBLY BILL 1170
1165	1165	5. A partnership, limited liability company, or tax-option corporation may not
1166	1166	claim the credit under this subsection, but the partners, members, and shareholders
1167	1167	may claim the credit based on the payment of the qualified startup costs by the
1168	1168	partnership, limited liability company, or tax-option corporation. The partnership,
1169	1169	limited liability company, or tax-option corporation shall calculate the amount of the
1170	1170	credit that may be claimed by each partner, member, or shareholder and shall
1171	1171	provide that information to each of them. The partners, members, and shareholders
1172	1172	may claim the credit in proportion to their ownership interests.
1173	1173	(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
1174	1174	sub. (4), applies to the credit under this subsection.
1175	1175	SECTION 15. 71.28 (4w) of the statutes is created to read:
1176	1176	71.28 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1177	1177	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1178	1178	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1179	1179	arrangement in a qualified employer plan that is sponsored by the claimant and that
1180	1180	files a claim under this subsection.
1181	1181	2. “Eligible automatic contribution arrangement” has the meaning given in
1182	1182	section 414 (w) (3) of the Internal Revenue Code.
1183	1183	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1184	1184	the Internal Revenue Code.
1185	1185	(b) Filing claims. Subject to the limitations provided in this subsection, a
1186	1186	claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
1187	1187	amount of the tax, $500.
1188	1188	(c) Limitations. 1. The credit under this subsection may be claimed only for
1189	1189	3 consecutive taxable years beginning with the first taxable year for which the
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1215	1215	LRB-5191/1
1216	1216	JK&MIM:cjs
1217	1217	SECTION 15
1218	1218	ASSEMBLY BILL 1170
1219	1219	claimant includes an eligible automatic contribution arrangement in a qualified
1220	1220	employer plan that is sponsored by the claimant, except that no credit may be
1221	1221	claimed in a taxable year if an eligible automatic contribution arrangement is not
1222	1222	included in the qualified employer plan for that taxable year.
1223	1223	2. A partnership, limited liability company, or tax-option corporation may not
1224	1224	claim the credit under this subsection, but the partners, members, and shareholders
1225	1225	may claim the credit based on the inclusion by the partnership, limited liability
1226	1226	company, or tax-option corporation of an eligible automatic contribution
1227	1227	arrangement in a qualified employer plan that is sponsored by the partnership,
1228	1228	limited liability company, or tax-option corporation. The partnership, limited
1229	1229	liability company, or tax-option corporation shall calculate the amount of the credit
1230	1230	that may be claimed by each partner, member, or shareholder and shall provide that
1231	1231	information to each of them. The partners, members, and shareholders may claim
1232	1232	the credit in proportion to their ownership interests.
1233	1233	(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
1234	1234	sub. (4), applies to the credit under this subsection.
1235	1235	SECTION 16. 71.30 (3) (ct) and (cu) of the statutes are created to read:
1236	1236	71.30 (3) (ct) Retirement plan startup costs tax credit under s. 71.28 (4s).
1237	1237	(cu) Auto-enrollment tax credit under s. 71.28 (4w).
1238	1238	SECTION 17. 71.34 (1k) (g) of the statutes is amended to read:
1239	1239	71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
1240	1240	corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
1241	1241	(3wm), (3y), (4), (4s), (4w), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
1242	1242	passed through to shareholders.
1243	1243	SECTION 18. 71.45 (2) (a) 10. of the statutes is amended to read:
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1269	1269	JK&MIM:cjs
1270	1270	SECTION 18 ASSEMBLY BILL 1170
1271	1271	71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
1272	1272	computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (4s), (4w), (5e),
1273	1273	(5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
1274	1274	partnership, limited liability company, or tax-option corporation that has added that
1275	1275	amount to the partnership's, limited liability company's, or tax-option corporation's
1276	1276	income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under
1277	1277	s. 71.47 (3), (3t), (4), (4m), and (5).
1278	1278	SECTION 19. 71.47 (4s) of the statutes is created to read:
1279	1279	71.47 (4s) RETIREMENT PLAN STARTUP COSTS TAX CREDIT. (a) Definitions. In this
1280	1280	subsection:
1281	1281	1. “Claimant” means an eligible employer, as defined in section 45E (c) of the
1282	1282	Internal Revenue Code, that files a claim under this subsection.
1283	1283	2. “First credit year” has the meaning given in section 45E (d) (3) of the Internal
1284	1284	Revenue Code.
1285	1285	3. “Qualified startup costs” has the meaning given in section 45E (d) (1) of the
1286	1286	Internal Revenue Code.
1287	1287	(b) Filing claims. Subject to the limitations provided in this subsection, a
1288	1288	claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
1289	1289	amount of the tax, an amount equal to 50 percent of the qualified startup costs paid
1290	1290	or incurred by the claimant during the taxable year.
1291	1291	(c) Limitations. 1. The credit claimed under this subsection in a taxable year
1292	1292	may not exceed the greater the following:
1293	1293	a. $500.
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1317	1317	LRB-5191/1
1318	1318	JK&MIM:cjs
1319	1319	SECTION 19
1320	1320	ASSEMBLY BILL 1170
1321	1321	b. The lesser of $250 for each employee of the claimant who is not a highly
1322	1322	compensated employee, as defined in section 414 (q) of the Internal Revenue Code,
1323	1323	or $5,000.
1324	1324	2. The credit under this subsection may be claimed only for 3 consecutive
1325	1325	taxable years beginning with the first credit year.
1326	1326	3. The rules under section 45E (e) (1) and (3) of the Internal Revenue Code apply
1327	1327	to the credit under this subsection.
1328	1328	4. No credit may be claimed under this subsection for an amount that is
1329	1329	deducted under section 162 of the Internal Revenue Code.
1330	1330	5. A partnership, limited liability company, or tax-option corporation may not
1331	1331	claim the credit under this subsection, but the partners, members, and shareholders
1332	1332	may claim the credit based on the payment of the qualified startup costs by the
1333	1333	partnership, limited liability company, or tax-option corporation. The partnership,
1334	1334	limited liability company, or tax-option corporation shall calculate the amount of the
1335	1335	credit that may be claimed by each partner, member, or shareholder and shall
1336	1336	provide that information to each of them. The partners, members, and shareholders
1337	1337	may claim the credit in proportion to their ownership interests.
1338	1338	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1339	1339	sub. (4), applies to the credit under this subsection.
1340	1340	SECTION 20. 71.47 (4w) of the statutes is created to read:
1341	1341	71.47 (4w) AUTO-ENROLLMENT TAX CREDIT. (a) Definitions. In this subsection:
1342	1342	1. “Claimant” means an eligible employer, as defined in section 408 (p) (2) (C)
1343	1343	(i) of the Internal Revenue Code, that includes an eligible automatic contribution
1344	1344	arrangement in a qualified employer plan that is sponsored by the claimant and that
1345	1345	files a claim under this subsection.
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1372	1372	SECTION 20 ASSEMBLY BILL 1170
1373	1373	2. “Eligible automatic contribution arrangement” has the meaning given in
1374	1374	section 414 (w) (3) of the Internal Revenue Code.
1375	1375	3. “Qualified employer plan” has the meaning given in section 4972 (d) (1) of
1376	1376	the Internal Revenue Code.
1377	1377	(b) Filing claims. Subject to the limitations provided in this subsection, a
1378	1378	claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
1379	1379	amount of the tax, $500.
1380	1380	(c) Limitations. 1. The credit under this subsection may be claimed only for
1381	1381	3 consecutive taxable years beginning with the first taxable year for which the
1382	1382	claimant includes an eligible automatic contribution arrangement in a qualified
1383	1383	employer plan that is sponsored by the claimant, except that no credit may be
1384	1384	claimed in a taxable year if an eligible automatic contribution arrangement is not
1385	1385	included in the qualified employer plan for that taxable year.
1386	1386	2. A partnership, limited liability company, or tax-option corporation may not
1387	1387	claim the credit under this subsection, but the partners, members, and shareholders
1388	1388	may claim the credit based on the inclusion by the partnership, limited liability
1389	1389	company, or tax-option corporation of an eligible automatic contribution
1390	1390	arrangement in a qualified employer plan that is sponsored by the partnership,
1391	1391	limited liability company, or tax-option corporation. The partnership, limited
1392	1392	liability company, or tax-option corporation shall calculate the amount of the credit
1393	1393	that may be claimed by each partner, member, or shareholder and shall provide that
1394	1394	information to each of them. The partners, members, and shareholders may claim
1395	1395	the credit in proportion to their ownership interests.
1396	1396	(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
1397	1397	s. 71.28 (4), applies to the credit under this subsection.
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1425	1425	SECTION 21
1426	1426	ASSEMBLY BILL 1170
1427	1427	SECTION 21. 71.49 (1) (ct) and (cu) of the statutes are created to read:
1428	1428	71.49 (1) (ct) Start-up retirement plan costs tax credit under s. 71.47 (4s).
1429	1429	(cu) Auto-enrollment tax credit under s. 71.47 (4w).
1430	1430	SECTION 22. 230.08 (2) (en) of the statutes is created to read:
1431	1431	230.08 (2) (en) State treasurer; WisEARNS board: executive director and staff.
1432	1432	SECTION 23.0Initial applicability.
1433	1433	(1) TAX CREDITS. The treatment of ss. 71.05 (6) (a) 15., 71.07 (4s) and (4w), 71.10
1434	1434	(4) (ct) and (cu), 71.21 (4) (a), 71.26 (2) (a) 4., 71.28 (4s) and (4w), 71.30 (3) (ct) and
1435	1435	(cu), 71.34 (1k) (g), 71.45 (2) (a) 10., 71.47 (4s) and (4w), and 71.49 (1) (ct) and (cu)
1436	1436	first applies to taxable years beginning on January 1 of the year in which this
1437	1437	subsection takes effect, except that if this subsection takes effect after July 31, this
1438	1438	act first applies to taxable years beginning on January 1 of the year following the
1439	1439	year in which this subsection takes effect.
1440	1440	(END)
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