March 4, 2002 - Introduced by Representative Underheim. Referred to Committee
on Colleges and Universities.
AB883,1,5 1An Act to renumber and amend 233.20 (1m); to amend 13.094 (1), 13.94 (1)
2(o), 15.96 (8), 233.02 (1) (h) and 233.02 (8); and to create 15.96 (9), 49.45 (6n),
3233.02 (1) (i), 233.06 and 233.20 (1m) (b) of the statutes; relating to: the
4University of Wisconsin Hospital and Clinics Authority and providing a
5penalty.
Analysis by the Legislative Reference Bureau
Under current law, the board of directors of the University of Wisconsin
Hospitals and Clinics Authority (authority) must contract with the University of
Wisconsin Hospitals and Clinics Board (UWHC Board) for all nonprofessional
services performed at the authority and must enter into lease and affiliation
agreements with the board of regents of the University of Wisconsin (UW) System
for the lease of UW-Madison facilities to the authority and for the promotion of
medical education and research at UW-Madison.
This bill adds to the membership of the board of directors and the UWHC Board
two members appointed by the senate majority leader, and two members appointed
by the speaker of the assembly. The bill also removes the current representatives of
labor who serve on the boards at the pleasure of the governor and appoints their
replacements for three-year terms.
Under current law, the authority may issue bonds for any corporate purpose if
a majority of the authority's board of directors determines that the bonds are
structured to accommodate the possibility of early termination of the lease or

affiliation agreements. This bill requires, as well, that the authority submit a report
to the joint committee on finance (JFC) demonstrating that the authority will have
adequate staff for patient care at any facility whose construction or remodeling is
funded by the bonds, and that JFC approve the issuance of the bonds.
Current law requires JFC to conduct a review of the lease and affiliation
agreements every five years, beginning with an initial review that was completed by
June 29, 2001. In addition, current law directs the legislative audit bureau (LAB)
to conduct a performance evaluation audit of the authority before JFC's initial review
of the agreements. This bill requires JFC to conduct a review of the performance of
the authority every five years and requires LAB to conduct a performance evaluation
before each five-year review.
This bill also prohibits the authority from using any medical assistance funds
to influence the decision of any individual to support or oppose a labor organization
that represents or seeks to represent the individual or to become a member of a labor
organization. (This bill, however, does not prohibit a person from negotiating or
administering a collective bargaining agreement or performing any action that is
required by law or the terms of a collective bargaining agreement.)
Under the bill, the department of health and family services (DHFS) must
accept complaints from any individual who alleges that the authority has tried to
influence the decision of any individual to support or oppose a labor organization that
represents or seeks to represent the individual or to become a member of a labor
organization; must notify the authority of the complaint; and must direct the
authority to provide to DHFS records showing that the authority did not try to
influence such a decision. In addition, the bill authorizes the attorney general to
bring an action to enforce the prohibition. If the court determines that the authority
has tried to influence the decision of any individual to support or oppose a labor
organization that represents or seeks to represent the individual or to become a
member of a labor organization, the court must order the authority to repay to the
state an amount equal to the amount that the authority received from the state and
spent in connection with the authority's violation. The authority must also forfeit
an amount equal to twice the total amount that the authority spent in connection
with the authority's violation. The court may also order injunctive relief and any
other equitable relief that is appropriate.
An individual may also bring an action to enforce the prohibition. If the
individual prevails, the court must order the authority to repay to the state an
amount equal to the amount that the authority received from the state and spent in
connection with the authority's violation. The authority must also forfeit an amount
equal to twice the total amount that the authority spent in connection with the
authority's violation. The court may also order injunctive relief and any other
equitable relief that is appropriate.
If the authority discharges, demotes, threatens, or otherwise discriminates
against an individual regarding compensation or terms, conditions, or privileges of
employment because the individual or anyone acting at the request of the individual
provided or attempted to provide information to DHFS or the attorney general
regarding possible violations, the individual may bring a civil action for any damages

resulting from that discharge, demotion, threat, or discrimination. If the plaintiff
proves by a preponderance of the evidence that the discharge, demotion, threat, or
discrimination occurred, the court may grant any appropriate relief, including
reinstatement of the individual to his or her former position, compensatory damages,
costs, and reasonable attorney fees.
Finally, the bill prohibits the authority or certain appointed members of its
board of directors from contracting with any person whom the authority employs or
is affiliated with or in which the member has an ownership interest. In addition, the
bill prohibits a person from contracting with the authority if the person employs or
is affiliated with one of those members of the board of directors.
For further information see the state 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:
AB883, s. 1 1Section 1. 13.094 (1) of the statutes is amended to read:
AB883,3,142 13.094 (1) Five-year review. By June 29, 2001, and every No later than June
329 every
5 years thereafter by June 29, the joint committee on finance shall review
4the lease agreement under s. 233.04 (7) or (7g) and, the affiliation agreement under
5s. 233.04 (7m) or (7p), and the performance of the University of Wisconsin Hospitals
6and Clinics Authority, including the performance evaluation audit of the authority
7under s. 13.94 (1) (o)
. If the joint committee on finance determines that either the
8lease agreement or the affiliation agreement, or both, should be terminated, the
9committee shall submit its recommendations regarding the agreements to the
10legislature under s. 13.172 (2). The committee's recommendations shall include any
11suggested legislation necessary to adequately provide for the protection of the
12bondholders and those entering into contracts with the authority or to modify the
13powers and duties of the University of Wisconsin Hospitals and Clinics Authority to
14reflect termination of the lease agreement or affiliation agreement, or both.
AB883, s. 2 15Section 2. 13.94 (1) (o) of the statutes is amended to read:
AB883,4,3
113.94 (1) (o) Prior to the initial Before each 5-year review by the joint
2committee on finance under s. 13.094, perform a performance evaluation audit and
3distribute a report of its findings to the distributees specified in par. (b).
AB883, s. 3 4Section 3. 15.96 (8) of the statutes is amended to read:
AB883,4,105 15.96 (8) Two nonvoting members appointed by the governor, one of whom shall
6be an employee or a representative of a labor organization recognized or certified to
7represent employees in one of the collective bargaining units specified in s. 111.05 (5)
8(a) and one of whom shall be an employee or a representative of a labor organization
9recognized or certified to represent employees in one of the collective bargaining
10units specified in s. 111.825 (1m), for 3-year terms.
AB883, s. 4 11Section 4. 15.96 (9) of the statutes is created to read:
AB883,4,1312 15.96 (9) Two members appointed by the speaker of the assembly and 2
13members appointed by the senate majority leader for 3-year terms.
AB883, s. 5 14Section 5. 49.45 (6n) of the statutes is created to read:
AB883,4,1615 49.45 (6n) Use of funds by the University of Wisconsin Hospitals and
16Clinics Authority in connection with union organizing.
(a) In this subsection:
AB883,4,1817 1. "Authority" means the University of Wisconsin Hospitals and Clinics
18Authority.
AB883,4,2519 2. "Labor organization" means any employee organization in which employees
20participate and that exists primarily for the purpose of engaging in collective
21bargaining with any employer concerning grievances, labor disputes, wages, hours,
22or conditions of employment, or the promotion and advancement of the professional
23or occupational standards and the welfare of its members and families and any
24organization established for the same purposes composed of individuals or affiliates
25of any such employee organization.
AB883,5,9
1(b) The authority shall keep a separate account of money that it has received
2and that is appropriated under s. 20.435 (4) (b), (o), or (w) and may not use any of this
3money to influence the decision of any individual to support or oppose a labor
4organization that represents or seeks to represent the individual or to become a
5member of a labor organization. This paragraph does not prohibit a person, if
6otherwise permitted by law, from negotiating or administering a collective
7bargaining agreement or from performing any action that is required by law or the
8terms of a collective bargaining agreement. This paragraph does not apply to any
9money received before January 1, 2002.
AB883,5,1410 (c) 1. The department shall accept complaints from any individual who alleges
11that the authority is violating par. (b). The department shall notify the authority
12within 7 days after receiving the complaint and shall direct the authority to provide
13the department, within 10 days after the department notifies the authority of the
14complaint, records showing that the authority did not violate par. (b).
AB883,5,1615 2. Notwithstanding subd. 1., the department may not require the authority to
16maintain records relating to this subsection in any particular form.
AB883,5,2317 (d) The attorney general may bring an action to enforce par. (b). If the court
18determines that the authority has violated par. (b), the court shall order the
19authority to repay to the state an amount equal to the amount that the authority
20received under s. 20.435 (4) (b), (o), or (w) and spent in connection with the authority's
21violation. The authority shall also forfeit an amount equal to twice the total amount
22that the authority spent in connection with the authority's violation. The court may
23also order injunctive relief and any other equitable relief that is appropriate.
AB883,5,2524 (e) 1. Any person other than the attorney general may bring an action to enforce
25par. (b), but only if all of the following apply:
AB883,6,2
1a. The person filed with the department a written complaint under par. (c)
2alleging a violation of par. (b).
AB883,6,63 b. No earlier than 20 days after filing the complaint under par. (c), the person
4filed with the attorney general a copy of that complaint, a written description of the
5disposition of the complaint, and a written notice that the person intends to bring an
6enforcement action under this paragraph.
AB883,6,77 c. At least 60 days have elapsed since the person complied with subd. 1. b.
AB883,6,98 d. The attorney general did not bring an action to enforce par. (b) against the
9authority before the expiration of the time period specified in subd. 1. c.
AB883,6,1110 e. The complaint that the person files in his or her action is substantially based
11on the complaint that the person filed under subd. 1. a.
AB883,6,1612 2. If in an action brought under this paragraph the court determines that the
13authority violated par. (b), the court shall impose any penalty that would have been
14required and may order any relief that would have been permitted if the action had
15been brought under par. (d). Any forfeiture ordered under this subdivision shall be
16paid to the state.
AB883,6,1817 (f) Notwithstanding s. 803.09 (1), any person may intervene in an action
18brought under par. (d) or (e).
AB883,7,219 (g) If the court determines that the authority violated par. (b) in a case brought
20under par. (d) or (e), the court shall order the authority to pay the plaintiff's
21reasonable litigation costs, including a reasonable attorney fee, notwithstanding s.
22814.04 (1). If a person has intervened in a case under par. (f), the court shall order
23the authority to pay the intervenor's reasonable litigation costs, including a
24reasonable attorney fee, notwithstanding s. 814.04 (1), if the court determines that

1the intervenor made a substantial contribution to the plaintiffs in prosecuting the
2action.
AB883,7,133 (h) 1. If the authority discharges, demotes, threatens, or otherwise
4discriminates against an individual regarding compensation or terms, conditions, or
5privileges of employment because the individual or anyone acting at the request of
6the individual provided or attempted to provide information to the department or the
7attorney general regarding possible violations of par. (b), the individual may bring
8a civil action for any damages resulting from that discharge, demotion, threat, or
9discrimination. The action shall be commenced within 3 years after the discharge,
10demotion, threat, or discrimination or be barred. If the plaintiff proves by a
11preponderance of the evidence that the discharge, demotion, threat, or
12discrimination occurred, the court may grant any appropriate relief, including the
13following:
AB883,7,1414 a. Reinstatement of the individual to his or her former position.
AB883,7,1515 b. Compensatory damages.
AB883,7,1616 c. Costs, and not withstanding s. 814.04 (1), reasonable attorney fees.
AB883,7,1717 d. Other relief to remedy past discrimination.
AB883,7,1918 2. An individual may not bring an action under subd. 1. if he or she did any of
19the following:
AB883,7,2020 a. Deliberately caused or participated in the violation of par. (b).
AB883,7,2221 b. Knowingly or recklessly provided substantially false information to the
22department regarding a violation of par. (b).
AB883,7,2523 (i) Any individual who knowingly authorizes the use of money received under
24s. 20.435 (4) (b), (o), or (w) in conjunction with a violation of par. (b) shall forfeit all
25of the following:
AB883,8,1
11. For each violation, $1,000.
AB883,8,32 2. The amount of money that the person authorized to be used under par. (i)
3(intro.).
AB883, s. 6 4Section 6. 233.02 (1) (h) of the statutes is amended to read:
AB883,8,105 233.02 (1) (h) Two nonvoting members appointed by the governor, one of whom
6shall be an employee or a representative of a labor organization recognized or
7certified to represent employees in one of the collective bargaining units specified in
8s. 111.05 (5) (a) and one of whom shall be an employee or a representative of a labor
9organization recognized or certified to represent employees in one of the collective
10bargaining units specified in s. 111.825 (1m), for 3-year terms.
AB883, s. 7 11Section 7. 233.02 (1) (i) of the statutes is created to read:
AB883,8,1312 233.02 (1) (i) Two members appointed by the speaker of the assembly and 2
13members appointed by the senate majority leader for 3-year terms.
AB883, s. 8 14Section 8. 233.02 (8) of the statutes is amended to read:
AB883,8,2315 233.02 (8) The members of the board of directors shall annually elect a
16chairperson and may elect other officers as they consider appropriate. Six Eight
17voting members of the board of directors constitute a quorum for the purpose of
18conducting the business and exercising the powers of the authority, notwithstanding
19the existence of any vacancy. The members of the board of directors specified under
20sub. (1) (c) and (g) may not be the chairperson of the board of directors for purposes
21of 1995 Wisconsin Act 27, section 9159 (2). The board of directors may take action
22upon a vote of a majority of the members present, unless the bylaws of the authority
23require a larger number.
AB883, s. 9 24Section 9. 233.06 of the statutes is created to read:
AB883,9,8
1233.06 Conflicts of interest prohibited. (1) The authority may not contract
2with any person who employs or is affiliated with a member of the board of directors
3appointed under s. 233.02 (1) (a) or (i) or in which the member has an ownership
4interest. No person may contract with the authority if the person employs or is
5affiliated with a member of the board of directors appointed under s. 233.02 (1) (a)
6or (i). The prohibitions in this subsection also apply to a former board member
7appointed under s. 233.02 (1) (a) or (i) for one year following the expiration of his or
8her term or following resignation from the board of directors.
AB883,9,11 9(2) A person who is a party to a contract violating sub. (1) may be subject to a
10forfeiture of not more than $10,000 for each violation. Each day of violation
11constitutes a separate offense.
AB883, s. 10 12Section 10. 233.20 (1m) of the statutes is renumbered 233.20 (1m) (intro.) and
13amended to read:
AB883,9,1414 233.20 (1m) (intro.) The authority may issue bonds only if a all of the following:
AB883,9,21 15(a) A majority of the board of directors determines that, to the extent possible
16without having an adverse impact on the ability of the authority to sell bonds at a
17given interest rate, the terms on which the bonds are to be offered are structured in
18such a way as to accommodate the possibility of the early termination of the lease or
19affiliation agreement, or both. The board shall base a determination under this
20subsection paragraph on the best information available to the board at the time the
21determination is made.
AB883, s. 11 22Section 11. 233.20 (1m) (b) of the statutes is created to read:
AB883,9,2523 233.20 (1m) (b) If the bonds to be issued will fund capital construction or
24remodeling, the authority submits a report to the joint committee on finance
25demonstrating that the authority will have adequate staff for patient care at the

1facility whose construction or remodeling is to be funded by the bonds, and the
2committee approves the issuance of the bonds.
AB883, s. 12 3Section 12 . Nonstatutory provisions.
AB883,10,104 (1) Notwithstanding sections 15.96 and 233.02 (1) of the statutes, the member
5of the University of Wisconsin Hospitals and Clinics Authority board appointed
6under section 15.96 (1) and (8) of the statutes and the member of the board of
7directors of the University of Wisconsin Hospitals and Clinics Authority appointed
8under section 233.02 (1) (a) and (h) of the statutes who are members of the board or
9board of directors immediately before the effective date of this subsection are
10removed on May 1, 2002, or on the effective date of this subsection, whichever is later.
AB883,10,1411 (2) Notwithstanding section 15.96 (1) and (8) of the statutes, the members of
12the University of Wisconsin Hospitals and Clinics board who are appointed under
13section 15.96 (1) and (8) of the statutes on or after the effective date of this subsection
14are appointed for the following initial terms:
AB883,10,1615 (a) One of the members under section 15.96 (1) of the statutes, for a term
16expiring on May 1, 2003.
AB883,10,1917 (b) One of the members under section 15.96 (1) of the statutes and one of the
18members under section 15.96 (8) of the statutes, as affected by this act, for terms
19expiring on May 1, 2004.
AB883,10,2220 (c) One of the members under section 15.96 (1) of the statutes and one of the
21members under section 15.96 (8) of the statutes, as affected by this act, for a term
22expiring on May 1, 2005.
AB883,11,223 (3) Notwithstanding section 233.02 (1) (a) and (h) of the statutes, the members
24of the board of directors of the University of Wisconsin Hospitals and Clinics
25Authority who are appointed under section 233.02 (1) (a) and (h) of the statutes on

1or after the effective date of this subsection are appointed for the following initial
2terms:
AB883,11,43 (a) One of the members under section 233.02 (1) (a) of the statutes, for a term
4expiring on May 1, 2003.
AB883,11,75 (b) One of the members under section 233.02 (1) (a) of the statutes and one of
6the members under section 233.02 (1) (h) of the statutes, as affected by this act, for
7a term expiring on May 1, 2004.
AB883,11,108 (c) One of the members under section 233.02 (1) (a) of the statutes and one of
9the members under section 233.02 (1) (h) of the statutes, as affected by this act, for
10a term expiring on May 1, 2005.
AB883,11,1311 (4) Notwithstanding section 15.96 (9) of the statutes, as created by this act, the
12members of the University of Wisconsin Hospitals and Clinics board are appointed
13for the following initial terms:
AB883,11,1514 (a) Two of the members appointed under section 15.96 (9) of the statutes, as
15created by this act, for terms expiring on May 1, 2004.
AB883,11,1716 (b) Two of the members appointed under section 15.96 (9) of the statutes, as
17created by this act, for terms expiring on May 1, 2005.
AB883,11,2018 (5) Notwithstanding section 233.02 (1) (i) of the statutes, as created by this act,
19the members of the board of directors of the University of Wisconsin Hospitals and
20Clinics Authority are appointed for the following initial terms:
AB883,11,2221 (a) Two of the members appointed under section 233.02 (1) (i) of the statutes,
22as created by this act, for terms expiring on May 1, 2004.
AB883,11,2423 (b) Two of the members appointed under section 233.02 (1) (i) of the statutes,
24as created by this act, for terms expiring on May 1, 2005.
AB883,12,3
1(6) By the first day of the 25th month after the effective date of this subsection,
2the legislative audit bureau shall audit the University of Wisconsin Hospitals and
3Clinics Authority to evaluate the retention and recruitment of nursing staff.
AB883, s. 13 4Section 13. Initial applicability.
AB883,12,65 (1) The treatment of section 233.20 (1m) (b) of the statutes first applies to bonds
6issued on the effective date of this subsection.
AB883,12,87 (2) The treatment of section 233.06 of the statutes first applies to contracts
8entered into, extended, or modified on the effective date of this subsection.
Loading...
Loading...