Ayes: 6 - Representatives Walker, Friske, Skindrud, Balow, Pocan and Colon.
Noes: 2 - Representatives Suder and Owens.
To committee on Rules.
Scott Walker
Chairperson
Committee on Corrections and the Courts
The committee on Ways and Means reports and recommends:
Assembly Bill 386
Relating to: the sale of tangible personal property that is delivered in this state.
Passage:
Ayes: 12 - Representatives M. Lehman, Ainsworth, F. Lasee, Olsen, Owens, Starzyk, Sykora, Ziegelbauer, Wood, Morris-Tatum, Turner and Pocan.
Noes: 0.
To committee on Rules.
Michael Lehman
Chairperson
Committee on Ways and Means
__________________
Speaker's Communications
September 11, 2001
The Honorable John Scocos
Assembly Chief Clerk
Dear Chief Clerk:
As Assembly Speaker, I have created from the Committee on Agriculture the Subcommittee on Tractor & Farm Equipment Safety. The subcommittee shall report to the committee on legislation and issues relating to tractor and farm equipment safety and any legislation referred to it. Additionally, I have appointed Representatives Bies - chair, Ainsworth, Loeffelholz, Gronemus - ranking member, and Steinbrink to the subcommittee.
Please afford them all due consideration and accommodations by custom and rule. If you have any questions, please contact Adam Peer in my office.
Sincerely,
Scott R. Jensen
Assembly Speaker
A394__________________
September 20, 2001
Representative Hahn, Co-Chairperson
Joint Survey Committee on Tax Exemptions
State Capitol, Room 15 West
Senator Decker, Co-Chairperson
Joint Survey Committee on Tax Exemptions
State Capitol, Room 323 South
Dear Representative Hahn and Senator Decker:
Pursuant to Assembly Rule 42(1)(am) and section 13.52(6), Wisconsin Statutes, the co-chairpersons of the Joint Survey Committee on Tax Exemptions shall prepare and submit a report in writing setting forth an opinion on the desirability of Assembly Bill 506, relating to references to the Internal Revenue Code for income and franchise tax purposes, as a matter of public policy.
Sincerely,
Scott R. Jensen
Assembly Speaker
__________________
Referral of Agency Reports
State of Wisconsin
University of Wisconsin System
Madison
DATE: September 12, 2001

TO: John A. Scocos
Assembly Chief Clerk

Donald J. Schneider
Senate Chief Clerk
FROM: Katherine C. Lyall, President
University of Wisconsin System

RE: Wisconsin Environmental Policy Act
The University of Wisconsin System is pleased to provide you with a copy of our annual Wisconsin Environmental Policy Act (WEPA) report. In fulfillment of Section 1.11 (2)(j) Wisconsin Statutes, this document provides information on the numbers of Environmental Assessments (EA's) and Environmental Impact Statements (EIS's) completed in the past fiscal year.
This report addresses the activities of the University of Wisconsin System for the period from July 1, 2000 through June 30, 2001.
Questions regarding this report should be directed to Terri Reda, UW System Environmental Affairs Officer. Terri may be reached at 263-4410.
Referred to committee on Natural Resources.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
September 18, 2001
To the Honorable, the Legislature:
At the request of the Department of Health and Family Services, we have completed a financial audit of the Health Insurance Risk-Sharing Plan (HIRSP) for fiscal year (FY) 1999-2000. HIRSP provides medical insurance for nearly 11,500 policyholders who are unable to obtain coverage in the private market. We have provided an unqualified opinion on HIRSP's financial statements and have followed up on issues raised in prior audits.
One of these issues relates to overpayment of prescription drug claims. From July 1998 through January 2001, the Department did not have controls in place to ensure that policyholders and pharmacies were reimbursed for prescription drugs at HIRSP-allowed rates. As a result, HIRSP overpaid drug claims by an estimated $5.5 million. The Department has reinstated system controls to reimburse drug claims at HIRSP-allowed rates, and it plans to begin recovery of overpayments in fall 2001. However, because of these efforts, at least 160 pharmacies have withdrawn from the program. The Department has recently implemented an on-line pharmacy claims processing system, which it expects will help to address pharmacy concerns and streamline the drug claims process.
Another major issue pertains to HIRSP's funding approach. In April 2001, the Board of Governors voted to implement an accrual-based funding approach in response to our prior audit recommendations, and following extensive debate. HIRSP's actuary projects that in fiscal year (FY) 2001-02, the change from a cash-based to an accrual-based approach will require policyholders, insurers, and health care providers to provide an additional $16.6 million to fund an accumulated accounting deficit. An excess policyholder premium reserve will fund the policyholders' share; the required contributions paid by health care providers are expected to meet their share; and insurers will fund their share through their semi-annual assessments.
We appreciate the courtesy and cooperation extended to us by the Department and the plan administrator for HIRSP. A response from the Department is Appendix 2.
Respectfully submitted,
Janice Mueller
State Auditor
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