PROPOSED
ORDER OF THE STATE OF WISCONSIN
DEPARTMENT OF VETERANS AFFAIRS
ADOPTING PERMANENT RULE
S REGARDING VA 2.08
THE VETERANS EMPLOYMENT AND ENTREPENEURSHIP GRANT PROGRAM
The statement of scope for this rule to modify Chapter
VA
2.08
, SS
069-16
, was approved by the Governor on
July 22, 2016
, published in
Register No.
728A2
on
August 8, 2016
, and approved by Secretary John A. Scocos on
August 19, 2016
.
ORDER
The Department of Veterans Affairs proposes an order to create VA 2.08 (title), VA
2.08(1), VA 2.08(2), VA 2.08(3), VA 2.08(4) and VA 2.08(5).
RULE SUMMARY/
ANALYSIS
PREPARED BY THE DEPARTMENT OF VETERANS AFFAIRS
1. Statute interpreted:
Section
45.437
Stats.
3. Explanation of agency authority:
Act 385 creates s.
45.437
, Stats., which provides the Department of Veterans Affairs authority to award grants to veterans, employers, and nonprofit or organizations to assist veteran entrepreneurs, to give employers in this state incentives to hire veterans, especially disabled veterans, to help fund employment training for veterans, especially disabled veterans, and for other programs or purposes as determined by the department by rule.
Section
45.437(4)
explicitly directs the Department of Veterans Affairs to promulgate
rules necessary to carry out the purposes of Chapter
45
and the powers and duties conferred upon it.
Section
45.03 (1)
, Stats., authorizes the Secretary of the Department of Veterans Affairs to promulgate rules necessary to carry out the purposes of Chapter
45
and the powers and duties conferred upon it.
Section
227.10 (1)
, Stats., directs each agency to promulgate as a rule each statement of policy to govern its enforcement and interpretation of a statute.
Section
227.10 (2m)
, Stats., directs each agency to promulgate rules for the implementation or enforcement of any standard, requirement, or threshold.
4. Related statute
s
or rule
s
:
Section
45.47
provides the definition of a grant recipient, details a grant recipient’s record-keeping duties, and provides for reduction, suspension, or termination of funds to grant recipients, in addition to other legal remedies, should a grant recipient fail in those duties.
5. Plain language analysis:
The department proposes to promulgate the required rules detailing the
goals grant recipients must meet and requiring that those goals be met before any grant moneys are disbursed
, as well as regarding the reporting requirements regarding the expenditures of grant moneys, and audits of those records to ensure compliance
.
The proposed new policies will establish the general criteria, procedures, requirements and conditions for employers and non-profit organizations to apply for grant funds not to exceed $500,000 in aggregate per fiscal year.
6. Summary of
,
and comparison with, existing
or proposed federal statutes and regulations.
The Veterans Employment and Entrepreneurship Grant Program is administered under the authority of state law. There are no existing or proposed federal regulations that address the activities to be regulated by the rule.
7. Comparison with rules in adjacent states:
In reviewing the statutes, rules and websites of veterans departments of adjacent states revealed no similar grant program
8. Summary of factual data and analytical methodologies:
The Department analyzed the grant processes of state agencies experienced in the administration of grants and used those processes as a foundation for the rule and application procedures.
9. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact
analysis
:
There is no anticipated impact on small businesses.
10.
Effect on small business
:
There is no anticipated impact on small businesses.
10.
Fiscal Estimate:
This rule will have no fiscal impact on small businesses. The program described by this rule may provide funds to some small businesses. It requires the completion of an application if the business wishes to receive grant funds, but imposes no duty on businesses not wishing to apply for the grant funds.
11.
Comments and opinions prepared by the Board of Veterans Affairs
under s.
45.03(2m)
, Stats.
:
Comments will be made available after the board reviews the proposed language prepared in this rule-making order.
1
2
. Agency contact person
and place where comments are to be submitted and deadline for submission
:
The public record on this proposed rule-making will be held open until close of business the day of the hearing to permit the submission of comments in lieu of public hearing testimony, or comments supplementing testimony offered at the hearing.
Prior to September 1, 2016, comments on proposed rules should be sent to:
Kelly Brady, paralegal
Office of Legal Counsel
Department of Veterans Affairs
201 W Washington Avenue
PO Box 7843
Madison, WI 53707-7843
Phone:
608-266-0518
Beginning September 1
, 2016 comments on proposed administrative rules will be accepted through the Legislature's website at
http://docs.legis.wisconsin.gov/code/comment
.
All submitted comments will be sent to the appropriate agency rules coordinators. It is necessary to include
your
contact information in your submitted comments if you wish to receive a response. The previous administrative rules website at health.wisconsin.gov/
admnrules
/public/Home will be decommissioned on September 1
, 2016
.
Section
1.
VA
2.08
is
created to read:
VA 2.08
Veterans
e
mployment
a
nd
e
ntrepreneurship
g
rants
.
(1)
AUTHORITY AND PURPOSE.
The purpose of this section is to establish rules for the implementation and administration of grants to assist veteran entrepreneurs, to give employers in this state incentives to hire veterans, especially disabled veterans,
and
to help fund employment training for veterans, especially disabled veterans, as authorized under s.
45.437
, Stats.
(2)
APPLICABILITY.
This section applies to grants awarded under s.
45.437
, Stats.
(3)
DEFINITIONS
In this section:
(
a
)
“Applicant” means
an
employer or nonprofit organization located in
th
is
state that applies for a grant to improve employment outcomes for veterans living in
th
is
state.
(b)
“Certification Request” means a
department approved
form used to verify the employee is a veteran and a resident of this state in accordance with sections 45.01(12) and 45.02, Wis. Stats.; and has a service-connected Federal VA disability rating of at least 50%, under
38 USC 1114
or
1134
.
(
c
)
“Department” means the Wisconsin department of veterans affairs.
(
d
)
“Disabled veteran” means a veteran who is verified by the department to have a service-connected disability rating of at least 50 percent under
38 USC 1114
or
1134
.
(e)
“Employee” means a person who is hired for a wage, salary, fee or payment to perform work for an employer.
(f
)
“Employer” means a person or organization
located in the state
that employs people, but does not include local, state
,
and federal government agencies.
(
g
)
“Evaluation committee” means a committee comprised of members of the board
of veterans affairs that evaluates applications made under
sub
section
(
5
)
.
(
h
)
“Full-time job” means a regular,
nonseasonal
full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays.
(
i
)
“Grant” means an agreement between the department and the grantee whereby the department provides funds from the appropriation under s.
20.485 (2) (
qm
)
, Stats., for the purposes specified in s.
45.437
, Stats.
(j
) “Grantee”
means an employer or nonprofit organization receiving a grant from the department
.
(
k
)
“G
rant participant
” means
a person who meets the requirements of s.
45.01
(12)
, Stats.
and receives services under
subsection (5).
(
l
)
“Nonprofit organization” is an organization described in section
501
(c) (3)
and
501
(c)(6)
of the internal revenue code
that
is exempt from federal income tax under s. 501 (a) of the internal revenue code.
(
m
)
“Part-time job” means a regular,
nonseasonal
part-time position in which an individual, as a condition of employment, is required to work fewer than 2,080 hours per year, including paid leave and holidays.
(n)
“Underserved geographic areas of the state” means rural communities.
(o)
“Underserved veteran populations” means minority groups, women, low-income, veterans with disabilities.
(
p
)
“Veteran” means a person who
meets the requirements of s.
45.01
(12)
, Stats.
, and resides in the state.
(4)
VETERANS EMPLOYMENT GRANTS.
(a)
From the appropriation account under s.
20.485 (2) (
qm
)
, Stats.,
the departmen
t may
award a grant in any of the following amounts to any
employer
who hires a veteran to work
at a business in
this state:
1.
For each disabled veteran the
employer
employs for 12 consecutive months
to work a full-time job at the
employer
’s business in this state, $2,500 following the first 6 months of employment, and $2,500 following the second 6
month
s of employment
.
2.
Subject to
par.
(
d
)
,
for each disabled veteran the
employer
employs for 12 consecutive months
to work a part-time job at the
employer
’s business in this state, $1,250 following the first 6 months of employment, and $1,250 following the second 6
month
s
of employment
.
(b)
GRANT APPLICATION. A grant application shall be submitted on a department approved form. The application shall specify employer and employee contact information and verification of employee employment status. The department may request additional verification of any information provided in the application. A “certification request” shall be submitted with the application. The certification shall be used to verify the employee is a veteran and a resident of this state in accordance with sections 45.01(12) and 45.02, Wis. Stats. and has a service-connected Federal VA disability rating of at least 50%, under
38 USC 1114
or
1134
. The form shall be submitted directly to the department, eithe
r manually or electronically.
(c)
The department shall not pay a grant to an applicant
if
the veteran voluntarily or involuntarily leaves his or her employment with the applicant.
(d)
The department shall determine the amount of the grant under sub. (
4
) (a)
as follows
:
1.
Divide the number of hours that the disabled veteran worked for the applicant during the
12 consecutive months of employment
by 2,080
, and then
2.
Multiply
$
1
,
250 or
$2,500 as determined
under sub.
(4) (a)
by the number determined under
subd
. 1.
(5)
VETERANS ENTREPRENEURSHIP GRANTS. (a)
Eligible applicant.
A nonprofit organization is eligible to receive a grant under this
sub
section when
the organization meets
all of the following
conditions
:
1.
It provides
entrepreneurship
training
, technical or business assistance, financial assistance
,
or other assistance to veteran entrepreneurs to improve employment outcomes.
2.
It is current on all federal and state tax obligations.
3.
It is a financially viable nonprofit organization.
In this subsection, a nonprofit organization is financially viable if the nonprofit organization can meet its financial obligations for the duration of the grant period.
4.
It is
registered and
current
ly in
good standing with the Wisconsin
d
epartment
of
f
inancial
i
nstitutions
.
(b)
Competitive solicitation
of grant proposals
. The department shall ensure that
it conducts
all solicitations
of grant proposals
in a
fair and competitive
manner
.
(c)
Public notice
of solicitation of grant proposals
.
The department shall provide reasonable public notice of all solicitations
by the department
for
proposals for the
award of grants by the department
under s.
45.437
, Stats.
Notice may be made through print, broadcast
,
or telecommunications media, including the Internet, at the discretion of the department.
The notice shall include the purpose of the grant
s
and
the selection criteria, application procedures, and all applicable solicitation deadlines that an applicant is required to meet, or shall contain instructions for obtaining this information.
(d)
Grant a
pplication requirements
.
A representative of the applicant having authority to act for the applicant shall
sign the application, ensure that it is complete, and submit it by the
deadline.
Applications shall include all of the following:
1
.
Application on a form created by the department.
2
.
Proof of nonprofit status
as a registered 501(c)(3) or 501(c)(6) organization
.
3
Grant request cover letter that includes a synopsis of the grant proposal and amount of grant requested.
4
.
A description of the
entrepreneurship
training
, technical
,
business
, or
financial assistance
, o
r other entrepreneurship assistance
that
it provides to veterans.
5
.
Most recent annual report or other literature summarizing programs.
6. List of board members and executive officers including titles and affiliations.
7
.
I
ncome statement and balance sheet for the most recent fiscal year.
8. Information that demonstrates that the applicant has achieved all of the following required program goals during the previous year:
a.
Expan
sion of
entrepreneur opportunities for veterans by providing
services that may include entrepreneurship
training, technical and business assistance
,
financial assistance
or o
ther entrepreneurship services
to veterans
.
b.
Increase
of
collaboration with other agencies to strengthen the delivery of programs, resources
,
and services to veteran entrepreneurs.
c.
Expan
sion
of
outreach to underserved
geographic areas of the state
and underserved
veteran
populations
.
(
e
)
Evaluation of
grant
a
pplications
.
The evaluation committee shall evaluate grant applications submitted under
this
sub
section
against selection criteria.
The department shall develop criteria to evaluate applicant
s
with regard to
all of
the
following
rating categories
:
1.
The applicant’s b
ackground and organizational history.
2.
The applicant’s
o
rganizational qualifications and past performance.
3.
The applicant’s
e
xperience working with veterans
.
4.
The applicant’s
n
eed for grant funding
, including a detailed budget
.
5.
The applicant’s
o
utreach and referral plan
.
6.
The applicant’s
p
rogram implementation timeline
7.
The applicant’s
m
onitoring and program evaluation
.
8.
The applicant’s
p
rogram goals and objectives.
9
.
The applicant’s
p
ast
w
orking
r
elationships with other
s
tart-up
b
usinesses and
e
ntrepreneurship
p
rograms.
(
f
)
Notification
of award or denial of grant
.
The department shall notify e
ach applicant in writing
of its decision to award or not award a grant
in accordance with the public notice
under this subsection.
(
g
)
Grant awards.
The department shall award a grant to the applicants with the highest numerical score
s
determined under the criteria developed under par. (e)
as funds are available.
A grant awarded under this section shall be made on forms prepared by the department.
The award shall be signed by the authorized representative of the department and shall list
any
conditions to which the award is subject.
(
h
)
Grant acceptance.
The authorized representative of the recipient nonprofit organization shall accept the grant award by signing the award document and returning it to the department.
The department may terminate a grant award if the award is not accepted within 10 calendar days of the date of issuance by the department.
(
i
)
Availability of funds
,
amount of grants
.
All grants awarded under this section shall be contingent upon availability of funds under s.
20.485 (2) (
tf
)
, Stats.
The amount of each grant will be based on the amount requested and the amount approved by the evaluation committee.
(
j
)
Restrictions.
1.
‘
Prohibited use of funds.
’
a.
Grant funds shall be used only for the payment or reimbursement of expenses assignable to the
approved
purposes of
the grant.
Any other use of grant funds is prohibited.
A grantee may not use the grant funds to supplant existing employee wages and compensation.
A grantee may not use grant funds to purchase capital equipment unless specified in the grant award.
b.
A grantee
agrees that no grant appropriated funds will be paid to any person for influencing or attempting to influence an officer or employee of any agency, any member of the Wisconsin
l
egislature
, or an employee of a member of the
l
egislature
in connection with the awarding of any state contract, the making of any state grant, the making of any state loan, the entering into of any cooperative agreement,
or
the extension, continuation, renewal, amendment, or modification of any state contract, grant, loan, or cooperative agreement
.
2.
‘
Violation of prohibited use of funds
’
.
If a grantee uses grant funds for prohibited activities under par. (a), the department may terminate the grant and recover funds previously paid to the grantee for that funding period on a recoupment schedule specified in the grant award.
3.
‘
Record keeping
’
.
A grantee shall maintain grant records for at least 3 years and shall provide information to the department as required by the department for the purposes of program or fiscal audits and, at the request of the department, shall appear before the department to respond to any questions about the grant and use of grant funds
.
(
k
)
Eligibility and certification.
In order for a grant participant t
o receive services
from the grantee
that are funded by a
grant
awarded under this subsection
, a grantee must submit a certification request to the department to verify eligibility of
each grant participant. Services can only be provided
by the grantee
to grant participants verified by the department as eligible on f
orms created by the department.
(
l
)
Reporting requirements.
A grantee receiving a grant under this
sub
section shall submit to the department data and information on the use and effect of the grant funds as specified in this section and in the grant award by 6 months from the date of
the
award
of the grant
or June 30 of the fiscal year in which the grant is awarded
, whichever is later
.
Such data and information includes:
1.
The number of
veterans assisted by the grantee with grant funds
.
2.
The
dollar
amount
of the grant funds
applied to each veteran assisted
.
3.
The
type of assistance given to each veteran with grant funds
.
4.
The
measurable
outcomes
of the grant funds applied
to
each veteran assisted as defined by the department at the time of awarding the grant
.
(
n
)
Assurances and certifications.
1.
‘
Authority to sign and accept funds
’
.
The grantee shall certify that the designated signatory official has the authority to sign on behalf of the grantee and has the authority to accept funds.
2.
‘
Compliance statement
’
.
Before the department releases grant funds, the grantee shall provide a statement that it is in compliance with applicable state and federal laws, rules, and regulations, including tax laws, the requirements of this section, and the grant award.
3.
‘
Nondiscrimination and equal opportunity
’
.
In accordance with s.
16.765
, Stats., the grantee may not discriminate in violation of state or federal law and
shall follow equal employment opportunity practices in the administration and delivery of program services to eligible applicants.
END OF RULE TEXT
Effective date.
This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s.
227.22 (2) (intro.)
, Stats
.
Dated this ___ day of _______,
201
6
.
STATE OF WISCONSIN
DEPARTMENT OF VETERANS AFFAIRS
John A. Scocos, Secretary
