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1999 - 2000 LEGISLATURE
October 5, 1999 - Introduced by Representatives Walker, Owens, Goetsch,
Ainsworth, Plale, Suder, Albers
and Seratti, cosponsored by Senator
Roessler. Referred to Committee on Labor and Employment.
AB513,1,3 1An Act to create 102.31 (1m) of the statutes; relating to: requiring contracts
2of worker's compensation insurance to provide for a bonus premium dividend
3for employers that maintain a drug-free workplace program.
Analysis by the Legislative Reference Bureau
Under current law, a contract of worker's compensation insurance, subject to
certain exceptions, must grant full coverage of all liability of the assured under the
worker's compensation law.
This bill requires every contract of worker's compensation insurance to provide
that the insurer shall declare a bonus premium dividend of up to 20% of the amount
of any premium dividend earned by the employer if the insurer determines that the
employer has earned a premium dividend on the contract and if the employer is
maintaining a drug-free workplace program that has been approved by the insurer.
Under the bill, an insurer must approve an employer's drug-free workplace
program if the program meets the minimum requirements specified in the bill. Those
minimum requirements are as follows:
1. The drug-free workplace program must include a drug testing program
under which all employes and prospective employes of the employer are subject to
testing for the presence of marijuana; cocaine; narcotic drugs; amphetamine;
methamphetamine; phencyclidine (PCP); all controlled substance analogs of those
controlled substances, that is, all substances whose chemical structure and effect on
the nervous system are similar to the chemical structure and effect on the nervous
system of any of those controlled substances; and all other controlled substances and

controlled substance analogs for which the insurer requires testing and for which the
federal department of health and human services has established an approved
testing protocol and a positive threshold. The drug testing program must require
testing for the presence of all of those controlled substances and controlled substance
analogs of all prospective employes; of any employe who is involved in an accident
causing injury or death; of any employe whom the employer has reasonable cause to
suspect is a probable user of any of those controlled substances or controlled
substance analogs; of any employe randomly; of any employe who is suspended or
terminated from employment as a result of a positive test result or a refusal to
undergo testing, prior to the employe's return to work and as follow-up testing; and
of any employe who undergoes treatment or rehabilitation for the use of any of those
controlled substances or controlled substance analogs, on the completion of that
treatment or rehabilitation and as follow-up testing.
2. The drug-free workplace program must include a written policy that
explains the requirements of the program and the policies and procedures for
meeting those requirements. The written policy must include, at a minimum, a
statement of the conduct that is prohibited under the program; the circumstances
under which testing is required; the procedures under which testing is conducted,
including procedures to ensure the integrity of the test samples and the
confidentiality of the test results; what constitutes a refusal to undergo testing; the
consequences of testing positive or of refusing to undergo testing; the effects that the
use of any of the controlled substances or controlled substance analogs tested under
the program has on the health, work and personal life of the user and the signs and
symptoms indicating that a person has a problem relating to the use of any of those
controlled substances or controlled substance analogs; the methods used by the
employer to encourage an employe who has a problem relating to the use of any of
those controlled substances or controlled substance analogs to refer himself or
herself voluntarily for treatment or rehabilitation; and the methods of intervention
that the employer may use to assist an employe who tests positive, refuses to undergo
a test or refers himself or herself voluntarily for treatment or rehabilitation.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB513, s. 1 1Section 1. 102.31 (1m) of the statutes is created to read:
AB513,2,42 102.31 (1m) (a) Every contract under sub. (1) (a) shall provide that the insurer
3shall declare a bonus premium dividend of up to 20% of the amount of any premium
4dividend earned by the employer if all of the following conditions are met:
AB513,3,2
11. The insurer determines that the employer has earned a premium dividend
2on the contract.
AB513,3,43 2. The employer is maintaining a drug-free workplace program that has been
4approved by the insurer under par. (b).
AB513,3,105 (b) An employer that wishes to be eligible for a bonus premium dividend under
6par. (a) shall submit its drug-free workplace program to the insurer for approval
7within 90 days after the date on which the contract under sub. (1) (a) is issued or is
8extended, modified or renewed. An insurer shall approve an employer's drug-free
9workplace program if the program meets the minimum requirements specified in
10pars. (c) to (e).
AB513,3,1411 (c) To be approved under par. (b), an employer's drug-free workplace program
12shall include a drug testing program under which all employes and prospective
13employes of the employer are subject to testing as described in par. (d) for the
14presence of all of the following:
AB513,3,1615 1. Marijuana, as defined in s. 961.01 (14), and synthetic
16tetrahydrocannabinols, as described in s. 961.14 (4) (t).
AB513,3,1817 2. Cocaine, cocaine base and all other salts, compounds, derivatives and
18preparations of coca leaves.
AB513,3,1919 3. Narcotic drugs, as defined in s. 961.01 (15).
AB513,3,2120 4. Amphetamine, methamphetamine and all immediate precursors to
21amphetamine and methamphetamine.
AB513,3,2322 5. Phencyclidine and its analogs described in s. 961.14 (4) (u), (ud), (ug) and
23(ur).
AB513,3,2524 6. All controlled substances analogs, as defined in s. 961.01 (4m), of the
25controlled substances, as defined in s. 961.01 (4), listed in subs. 1. to 5.
AB513,4,4
17. All other controlled substances and controlled substance analogs for which
2the insurer requires testing and for which the federal department of health and
3human services has established an approved testing protocol and a positive
4threshold.
AB513,4,75 (d) An employer's drug testing program under par. (c) shall require testing for
6the presence of all of the controlled substances and controlled substance analogs
7specified in par. (c) 1. to 7. as follows:
AB513,4,98 1. Of all prospective employe, after the prospective employe receives an offer
9of employment from the employer, but before commencing employment.
AB513,4,1310 2. Of any employe who is directly involved in an accident causing an injury or
11death for which compensation is payable, unless the employer can immediately
12determine that the employe had no role in causing the accident, within 32 hours after
13the accident.
AB513,4,2314 3. Of any employe whom the employer has reasonable cause to suspect is a
15probable user of a controlled substance or a controlled substance analog specified in
16par. (c) 1. to 7., based on the reasonable belief of a supervisor who has been trained
17in identifying employes who use controlled substances or controlled substance
18analogs that the employe is a probable user of a controlled substance or a controlled
19substance analog specified in par. (c) 1. to 7. The supervisor's reasonable belief shall
20be based on specific and current physical, behavioral or performance indicators of
21probable use, including chronic use and withdrawal from use, of a controlled
22substance or a controlled substance analog specified in par. (c) 1. to 7. observed while
23the employe is on duty.
AB513,5,624 4. Of any employe who is selected to undergo testing randomly. Each year an
25employer shall randomly test a percentage of the employer's employes that is

1determined by the insurer based on the percentage of positive test results for the
2employer's industry during the previous year. The employer shall select employes
3for random testing according to objective, neutral and nondiscretionary criteria and
4shall spread out the testing throughout the year so that on any given day any given
5employe has an equal chance of being tested. Testing under this subdivision shall
6be conducted without prior warning.
AB513,5,127 5. Of any employe who is suspended or terminated from employment as a result
8of a test result under this paragraph that indicates the presence of a controlled
9substance or a controlled substance analog specified in par. (c) 1. to 7. in the employe's
10system or as a result of the employe's refusal to undergo a test under this paragraph,
11prior to the employe's return to work and as follow-up testing for no more than 60
12months after the employe's return to work.
AB513,5,1613 6. Of any employe who undergoes treatment or rehabilitation for the use of a
14controlled substance or a controlled substance analog specified in par. (c) 1. to 7., on
15the completion of that treatment or rehabilitation and as follow-up testing for no
16more than 60 months after the completion of that rehabilitation or treatment.
AB513,5,2317 (e) To be approved under par. (b), an employer's drug-free workplace program
18shall include a written policy that explains the requirements of the program and the
19policies and procedures for meeting those requirements. The employer shall provide
20a copy of the policy to every employe of the employer and to every prospective employe
21who is offered employment with the employer prior to conducting any testing under
22par. (d). The written policy shall include, at a minimum, a statement of all of the
23following:
AB513,5,2424 1. The conduct that is prohibited under the drug-free workplace program.
AB513,5,2525 2. The circumstances under which testing under par. (d) is required.
AB513,6,4
13. The procedures under which the testing under par. (d) is conducted,
2including procedures relating to the labeling and handling of test samples to ensure
3the integrity of the testing process and procedures relating to the use of the test
4results to ensure the confidentiality of those results.
AB513,6,55 4. What constitutes a refusal to undergo a test under par. (d).
AB513,6,86 5. The consequences of testing positive for the presence of a controlled
7substance or a controlled substance analog specified in par. (c) 1. to 7. or of refusing
8to undergo a test under par. (d).
AB513,6,129 6. The effects that the use of a controlled substance or a controlled substance
10analog specified in par. (c) 1. to 7. has on the health, work and personal life of the user
11and the signs and symptoms indicating that a person has a problem relating to the
12use of any of those controlled substances or controlled substance analogs.
AB513,6,1613 7. The methods used by the employer to encourage an employe who has a
14problem relating to the use of a controlled substance or a controlled substance analog
15specified in par. (c) 1. to 7. to refer himself or herself voluntarily for treatment or
16rehabilitation before an accident or a work rule violation occurs.
AB513,6,2317 8. The methods of intervention, such as confrontation, referral to management
18or referral to an employe assistance program or other rehabilitation or treatment,
19that the employer may use to assist an employe who tests positive for the presence
20of a controlled substance or a controlled substance analog specified in par. (c) 1. to
217. in the employe's system, who refuses to undergo a test under par. (d) or who refers
22himself or herself voluntarily for treatment or rehabilitation of a problem relating
23to the use of any of those controlled substances or controlled substance analogs.
AB513, s. 2 24Section 2. Initial applicability.
AB513,7,3
1(1) This act first applies to contracts of worker's compensation insurance that
2are issued, or that are extended, modified or renewed, on the effective date of this
3subsection.
AB513,7,44 (End)
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