AB607,26,5
1102.80 (3) (c) If, after filing the certificate under par. (a), the secretary files the
2certificate under par. (ag), the department may expend the moneys in the uninsured
3employers fund only to make payments under s. 102.81 (1) to employes of uninsured
4employers on claims made before the date specified in that certificate and to obtain
5reinsurance under s. 102.81 (2) for the payment of those claims.
AB607, s. 42 6Section 42. 102.80 (4) of the statutes is created to read:
AB607,26,117 102.80 (4) (a) If an uninsured employer who owes to the department any
8amount under s. 102.82 or 102.85 (4) transfers his or her business assets or activities,
9the transferee is liable for the amounts owed by the uninsured employer under s.
10102.82 or 102.85 (4) if the department determines that all of the following conditions
11are satisfied:
AB607,26,1712 1. At the time of the transfer, the uninsured employer and the transferee are
13owned or controlled in whole or in substantial part, either directly or indirectly, by
14the same interest or interests. Without limitation by reason of enumeration, it is
15presumed unless shown to the contrary that the "same interest or interests" includes
16the spouse, child or parent of the individual who owned or controlled the business,
17or any combination of more than one of them.
AB607,26,2118 2. The transferee has continued or resumed the business of the uninsured
19employer, either in the same establishment or elsewhere; or the transferee has
20employed substantially the same employes as those the uninsured employer had
21employed in connection with the business assets or activities transferred.
AB607,26,2522 (b) The department may collect from a transferee described in par. (a) an
23amount owed under s. 102.82 or 102.85 (4) using the procedures specified in ss.
24102.83, 102.835 and 102.87 and the preference specified in s. 102.84 in the same
25manner as the department may collect from an uninsured employer.
AB607, s. 43
1Section 43. 102.81 (1) (a) of the statutes is amended to read:
AB607,27,82 102.81 (1) (a) If an employe of an uninsured employer , other than an employe
3who is eligible to receive alternative benefits under s. 102.28 (3),
suffers an injury for
4which the uninsured employer is liable under s. 102.03, the department or the
5department's reinsurer
shall pay to the injured employe or the employe's dependents
6an amount equal to the compensation owed them by the uninsured employer under
7this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) and
8(bp), 102.22 (1), 102.35 (3), 102.57 and 102.60.
AB607, s. 44 9Section 44. 102.81 (1) (b) of the statutes is amended to read:
AB607,27,1410 102.81 (1) (b) The department shall make the payments required under par.
11(a) from the uninsured employers fund, except that if the department has obtained
12reinsurance under sub. (2) and is unable to make those payments from the uninsured
13employers fund, the department's reinsurer shall make those payments according to
14the terms of the contract of reinsurance
.
AB607, s. 45 15Section 45. 102.81 (2) of the statutes is amended to read:
AB607,28,216 102.81 (2) The department may retain an insurance carrier or insurance
17service organization to process, investigate and pay claims under this section and
18may obtain excess or stop-loss reinsurance with an insurance carrier authorized to
19do business in this state in an amount that the secretary determines is necessary for
20the sound operation of the uninsured employers fund
. In cases involving disputed
21claims, the department may retain an attorney to represent the interests of the
22uninsured employers fund and to make appearances on behalf of the uninsured
23employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch.
24IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for
25the services retained under this subsection shall be paid from the appropriation

1under s. 20.445 (1) (sp). The cost of any reinsurance obtained under this subsection
2shall be paid from the appropriation under s. 20.445 (1) (sm).
AB607, s. 46 3Section 46. 102.81 (2) of the statutes, as affected by 1995 Wisconsin Act ....
4(this act), is repealed and recreated to read:
AB607,28,165 102.81 (2) The department may retain an insurance carrier or insurance
6service organization to process, investigate and pay claims under this section and
7may obtain excess or stop-loss reinsurance with an insurance carrier authorized to
8do business in this state in an amount that the secretary determines is necessary for
9the sound operation of the uninsured employers fund. In cases involving disputed
10claims, the department may retain an attorney to represent the interests of the
11uninsured employers fund and to make appearances on behalf of the uninsured
12employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch.
13IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for
14the services retained under this subsection shall be paid from the appropriation
15under s. 20.445 (1) (hp). The cost of any reinsurance obtained under this subsection
16shall be paid from the appropriation under s. 20.445 (1) (sm).
AB607, s. 47 17Section 47. 102.81 (7) of the statutes is amended to read:
AB607,28,2218 102.81 (7) This section first applies to injuries occurring on the first day of the
19calendar quarter first July beginning after the day that the secretary files a
20certificate under s. 102.80 (3) (a), except that if the secretary files a certificate under
21s. 102.80 (3) (ag) this section does not apply to claims filed on or after the date
22specified in that certificate
.
AB607, s. 48 23Section 48. 102.83 (1) (a) of the statutes is amended to read:
AB607,29,1724 102.83 (1) (a) If an uninsured employer fails to pay to the department any
25amount owed to the department under s. 102.82 and no appeal or other proceeding

1for review is pending and the time for taking an appeal has expired, the department
2or any authorized representative may issue a warrant directed to the clerk of circuit
3court for any county of the state. The clerk shall enter in the judgment docket the
4name of the uninsured employer mentioned in the warrant and the amount of the
5payments, interest, costs and other fees for which the warrant is issued and the date
6when the warrant is filed. A warrant so docketed shall be considered in all respects
7as a final judgment constituting a perfected lien on the uninsured employer's right,
8title and interest in all of the uninsured employer's real and personal property
9located in the county where the warrant is docketed. After the warrant is docketed,
10the department or any authorized representative may file an execution with the
11clerk of circuit court for filing by the clerk with the sheriff of any county where real
12or personal property of the uninsured employer is found, commanding the sheriff to
13levy upon and sell sufficient real and personal property of the uninsured employer
14to pay the amount stated in the warrant in the same manner as upon an execution
15against property issued upon the judgment of a court of record, and to return the
16warrant to the department and pay to it the money collected by virtue of the warrant
17within 60 days after receipt of the warrant.
AB607, s. 49 18Section 49. 102.835 (1) (b) of the statutes is repealed.
AB607, s. 50 19Section 50. 102.835 (1) (c) of the statutes is repealed.
AB607, s. 51 20Section 51. 102.835 (12) of the statutes is amended to read:
AB607,30,921 102.835 (12) Notice before levy. If no appeal or other proceeding for review
22permitted by law is pending and the time for taking an appeal has expired, the
23department shall make a demand to the uninsured employer for payment of the debt
24which is subject to levy and give notice that the department may pursue legal action
25for collection of the debt against the uninsured employer. The department shall

1make the demand for payment and give the notice at least 10 days prior to the levy,
2personally or by any type of mail service which requires a signature of acceptance,
3at the address of the uninsured employer as it appears on the records of the
4department. The demand for payment and notice shall include a statement of the
5amount of the debt, including costs and fees, and the name of the uninsured employer
6who is liable for the debt. The uninsured employer's failure to accept or receive the
7notice does not prevent the department from making the levy. Notice prior to levy
8is not required for a subsequent levy on any debt of the same uninsured employer
9within one year after the date of service of the original levy.
AB607, s. 52 10Section 52. 102.835 (16) of the statutes is repealed.
AB607, s. 53 11Section 53. 102.835 (17) of the statutes is repealed.
AB607, s. 54 12Section 54. 626.125 of the statutes is created to read:
AB607,30,15 13626.125 Qualified loss management program. (1) Elements of program.
14The bureau may file with the commissioner under s. 626.13 a qualified loss
15management program that contains all of the following elements:
AB607,30,2116 (a) 1. Subject to subd. 2., the bureau shall restrict eligibility for participation
17in the qualified loss management program to an employer that has obtained any
18insurance specified in s. 626.03, that is eligible for an experience rating under s.
19626.12 (1), that is eligible for coverage under a mandatory risk-sharing plan under
20s. 619.01 (1) and that, as of July 1, 1995, has a rate of not less than $10 on the risk
21classification that generates the most manual premium for that employer.
AB607,31,322 2. Notwithstanding subd. 1., the bureau may broaden eligibility for
23participation in the qualified loss management program to an entire specific
24classification of employers that have obtained any insurance specified in s. 626.03
25and that are ineligible for coverage under a mandatory risk-sharing plan under s.

1619.01 (1) if the bureau determines that permitting that entire specific classification
2of employers to participate in the qualified loss management program is necessary
3to support the effective delivery of safety training to a high-risk industry.
AB607,31,74 (b) The bureau shall grant a prospective premium credit to an eligible employer
5that subscribes to a loss management action plan prepared by a loss management
6firm approved under sub. (2) that specifies the activities that the eligible employer
7will perform to reduce its loss experience.
AB607,31,138 (c) The bureau shall base the initial prospective premium credit granted to an
9eligible employer on the qualifications of the loss management firm that prepared
10the loss management action plan subscribed to by the eligible employer and on the
11improvement in the loss experience of the eligible employer anticipated by the
12bureau, in accordance with generally accepted actuarial principles, as a result of the
13loss management action plan.
AB607,31,1614 (d) The bureau shall base subsequent prospective premium credits granted to
15an eligible employer on the aggregate loss experience of all eligible employers served
16by the loss management firm serving the eligible employer.
AB607,31,1917 (e) The bureau shall adjust the prospective premium credits granted under
18pars. (c) and (d) to reflect any credits granted under s. 626.12 (1) as a result of the
19same improved loss experience.
AB607,32,9 20(2) Approval of loss management firms. The bureau may approve a loss
21management firm for the purpose of preparing loss management action plans for
22eligible employers if the loss management firm demonstrates an ability to reduce the
23worker's compensation loss experiences of its clients and if the loss management firm
24submits a loss management program that is approved by the bureau. In reviewing
25the qualifications of a loss management firm, the bureau shall consider the training,

1experience and qualifications of the loss management firm's key personnel and the
2loss management firm's approach to focussing the attention of its clients on the issue
3of safety and to assuring and measuring the commitment of its clients to
4implementing safe work practices. In reviewing the loss management program of a
5loss management firm, the bureau shall consider the program's plan of action and
6techniques for assisting an injured employe in obtaining medical care, for continuing
7communication with the employe and monitoring his or her progress during the
8recuperation period and for encouraging an injured employer to return to work as
9soon as possible.
AB607,32,14 10(3) The bureau shall report annually to the commissioner and the secretary of
11industry, labor and human relations on the status of the program under this section.
12The report shall include an evaluation of the degree of success achieved by each loss
13management firm approved under sub. (2) in reducing the worker's compensation
14loss experience of its clients participating in the program.
AB607,32,15 15(4) This section does not apply after December 31, 1997.
AB607, s. 55 16Section 55. Appropriation changes.
AB607,32,21 17(1) Uninsured employers program administration. In the schedule under
18section 20.005 (3) of the statutes for the appropriation to the department of industry,
19labor and human relations under section 20.445 (1) (hp) of the statutes, as affected
20by the acts of 1995, the dollar amount is increased by $500,000 for fiscal year 1996-97
21to increase funding for the purpose for which the appropriation is made.
AB607,33,3 22(2) Uninsured employers fund administration lapse. In the schedule under
23section 20.005 (3) of the statutes for the appropriation to the department of industry,
24labor and human relations under section 20.445 (1) (hp) of the statutes, as affected
25by the acts of 1995, the dollar amount is increased for fiscal year 1996-97 by an

1amount equal to the unencumbered balance in the appropriation under section
220.445 (1) (sp), 1993 stats., immediately before the effective date of the renumbering
3and amendment of section 20.445 (1) (sp), 1993 stats.
AB607, s. 56 4Section 56 . Initial applicability.
AB607,33,7 5(1) General coverage. The treatment of sections 102.07 (11m) and (12m),
6102.077 and 102.29 (8) and (9) of the statutes first applies to injuries occurring on
7the effective date of this subsection.
AB607,33,10 8(2) Certified reports. The treatment of section 102.17 (1) (d) and (7) (a), (b)
9and (c) of the statutes first applies to hearings noticed under section 102.17 (1) (a)
10of the statutes on the effective date of this subsection.
AB607,33,13 11(3) Business transferee liability. The treatment of section 102.80 (4) of the
12statutes first applies to business asset or activities transfers that occur on the
13effective date of this subsection.
AB607,33,16 14(4) Alternative benefits coverage. The treatment of sections 102.01 (1) (em),
15102.07 (4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes first
16applies to injuries occurring on the effective date of this subsection.
AB607, s. 57 17Section 57. Effective dates. This act takes effect on January 1, 1996, or on
18the day after publication, whichever is later, except as follows:
AB607,33,21 19(1) Alternative benefits. The treatment of sections 102.01 (1) (em), 102.07
20(4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes and Section 56
21(4) of this act take effect on the day after publication.
AB607,33,24 22(2) Uninsured employers program administration. The treatment of section
2320.445 (1) (sp) of the statutes and the repeal and recreation of sections 20.445 (1) (ha),
24102.80 (3) (b) and 102.81 (2) of the statutes take effect on July 1, 1996.
AB607,33,2525 (End)
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