LRB-1004/1
PJK:wlj:jf
2007 - 2008 LEGISLATURE
January 24, 2007 - Introduced by Representatives Hubler, Boyle, Molepske,
Gronemus, Berceau, Ziegelbauer, Sherman, Albers, Staskunas, Musser,
Black, Pocan, Sheridan, Hahn, Vruwink, Travis, Nelson, Seidel, Jorgensen,
Garthwaite, Hilgenberg, Smith, Hraychuck, Shilling, Fields, Gunderson

and Hebl, cosponsored by Senators Vinehout, Jauch, Harsdorf, Miller,
Schultz, Hansen
and Lassa. Referred to Committee on Health and
Healthcare Reform.
AB24,1,9 1An Act to repeal 49.46 (1) (L); to renumber and amend 49.47 (4) (h); to amend
249.46 (1) (a) 1., 49.46 (1) (a) 1g., 49.46 (1) (a) 1m., 49.46 (1) (a) 6., 49.46 (1) (a)
39., 49.46 (1) (a) 10., 49.46 (1) (a) 11., 49.46 (1) (a) 12., 49.46 (1) (am) 1. a., 49.46
4(1) (am) 1. b., 49.46 (1) (e), 49.47 (4) (am) 1., 49.47 (4) (am) 2., 49.47 (4) (c) 1.,
549.47 (4) (c) 3., 49.47 (4) (j), 49.665 (4) (a) 1., 49.665 (4) (am) 1. and 49.665 (4)
6(ap) 1.; and to create 49.46 (1) (ar), 49.47 (4) (cg) 3. and 49.665 (4) (e) of the
7statutes; relating to: exempting amounts claimed for depreciation for
8purposes of calculating farm and self-employment income under the Medical
9Assistance and Badger Care health care programs.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Health and Family Services (DHFS)
administers the Medical Assistance (MA) program and the Badger Care health care
(BadgerCare) program.
Under the AFDC-related and Healthy Start eligibility categories of MA, DHFS
provides health care services and benefits, generally, to individuals who meet the
nonfinancial and financial requirements for the federal Aid to Families with
Dependent Children (AFDC) program that were in effect on July 16, 1996, to

low-income children and pregnant women, and to children and pregnant women
whose family incomes have been reduced to eligible levels on account of medical
expenses.
BadgerCare provides health care coverage to eligible low-income children who
do not reside with a parent and to eligible low-income families, and provides
prenatal care to unborn children whose mothers meet financial and other eligibility
criteria but who are not otherwise eligible for BadgerCare or MA. Under
BadgerCare, a child, family, or unborn child meets financial eligibility criteria if the
income of the child, family, or unborn child's mother, mother and spouse, or mother's
family does not exceed 185 percent of the poverty line.
Currently, in calculating an individual's income for purposes of MA or
BadgerCare eligibility, if the individual has farm or self-employment income, DHFS
calculates the amount of that income by adding to the amount of the individual's net
taxable income any amount that the individual claimed for depreciation. This bill
prohibits DHFS from adding any amounts claimed for depreciation to an individual's
net taxable farm or self-employment income for purposes of determining whether an
individual meets the income limits for BadgerCare or for MA under the
AFDC-related or Healthy Start eligibility categories.
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:
AB24, s. 1 1Section 1. 49.46 (1) (a) 1. of the statutes is amended to read:
AB24,2,42 49.46 (1) (a) 1. Notwithstanding s. 49.19 (20), any individual who, without
3regard to the individual's resources and subject to par. (ar), would qualify for a grant
4of aid to families with dependent children under s. 49.19.
AB24, s. 2 5Section 2. 49.46 (1) (a) 1g. of the statutes is amended to read:
AB24,2,96 49.46 (1) (a) 1g. Notwithstanding s. 49.19 (20), any individual who, without
7regard to the individual's resources and subject to par. (ar), would qualify for a grant
8of aid to families with dependent children but who would not receive the aid solely
9because of the application of s. 49.19 (11) (a) 7.
AB24, s. 3 10Section 3. 49.46 (1) (a) 1m. of the statutes is amended to read:
AB24,3,4
149.46 (1) (a) 1m. Any pregnant woman whose income, determined in
2accordance with par. (ar),
does not exceed the standard of need under s. 49.19 (11)
3and whose pregnancy is medically verified. Eligibility continues to the last day of
4the month in which the 60th day after the last day of the pregnancy falls.
AB24, s. 4 5Section 4. 49.46 (1) (a) 6. of the statutes is amended to read:
AB24,3,96 49.46 (1) (a) 6. Any person not described in pars. (c) to (e) who, without regard
7to the individual's resources and subject to par. (ar), would be considered, under
8federal law, to be receiving aid to families with dependent children for the purpose
9of determining eligibility for medical assistance.
AB24, s. 5 10Section 5. 49.46 (1) (a) 9. of the statutes is amended to read:
AB24,3,1311 49.46 (1) (a) 9. Any pregnant woman not described under subd. 1., 1g., or 1m.
12whose family income, determined in accordance with par. (ar), does not exceed 133%
13133 percent of the poverty line for a family the size of the woman's family.
AB24, s. 6 14Section 6. 49.46 (1) (a) 10. of the statutes is amended to read:
AB24,3,1815 49.46 (1) (a) 10. Any child not described under subd. 1. or 1g. who is under 6
16years of age and whose family income, determined in accordance with par. (ar), does
17not exceed 133% 133 percent of the poverty line for a family the size of the child's
18family.
AB24, s. 7 19Section 7. 49.46 (1) (a) 11. of the statutes is amended to read:
AB24,4,320 49.46 (1) (a) 11. If a waiver under s. 49.665 is granted and in effect, any child
21not described under subd. 1. or 1g. who has attained the age of 6 but has not attained
22the age of 19 and whose family income, determined in accordance with par. (ar), does
23not exceed 100% 100 percent of the poverty line for a family the size of the child's
24family. If a waiver under s. 49.665 is not granted or in effect, any child not described
25in subd. 1. or 1g. who was born after September 30,1983, who has attained the age

1of 6 but has not attained the age of 19 and whose family income , determined in
2accordance with par. (ar),
does not exceed 100% 100 percent of the poverty line for
3a family the size of the child's family.
AB24, s. 8 4Section 8. 49.46 (1) (a) 12. of the statutes is amended to read:
AB24,4,75 49.46 (1) (a) 12. Any child not described under subd. 1. or 1g. who is under 19
6years of age and whose income, determined in accordance with par. (ar), does not
7exceed the standard of need under s. 49.19 (11).
AB24, s. 9 8Section 9. 49.46 (1) (am) 1. a. of the statutes is amended to read:
AB24,4,139 49.46 (1) (am) 1. a. A pregnant woman whose family income, determined in
10accordance with par. (ar) and
before any income is disregarded under this paragraph,
11does not exceed, in state fiscal year 1994-95, 155% of the poverty line for a family the
12size of the woman's family; and,
in each state fiscal year after the 1994-95 state fiscal
13year, 185%
, 185 percent of the poverty line for a family the size of the woman's family.
AB24, s. 10 14Section 10. 49.46 (1) (am) 1. b. of the statutes is amended to read:
AB24,4,2015 49.46 (1) (am) 1. b. A child who is under 6 years of age and whose family income,
16determined in accordance with par. (ar) and before any income is disregarded under
17this paragraph, does not exceed, in state fiscal year 1994-95, 155% of the poverty line
18for a family the size of the child's family; and,
in each state fiscal year after the
191994-95 state fiscal year, 185%
, 185 percent of the poverty line for a family the size
20of the child's family.
AB24, s. 11 21Section 11 . 49.46 (1) (ar) of the statutes is created to read:
AB24,5,622 49.46 (1) (ar) 1. Except as provided in subd. 2. and except to the extent that the
23determination is inconsistent with 42 USC 1396a (a) (17), for purposes of
24determining under par. (a) 1., 1g., or 6. whether an individual would qualify for a
25grant of aid to families with dependent children under s. 49.19 or would be

1considered, under federal law, to be receiving aid to families with dependent
2children, or of determining whether an individual meets the income limits under par.
3(a) 1m., 9., 10., 11., or 12., "income" includes income that would be included in
4determining eligibility for aid to families with dependent children under s. 49.19 and
5excludes income that would be excluded in determining eligibility for aid to families
6with dependent children under s. 49.19.
AB24,5,137 2. Notwithstanding s. 49.19 (5), for purposes of determining under par. (a) 1.,
81g., or 6. whether an individual would qualify for a grant of aid to families with
9dependent children under s. 49.19 or would be considered, under federal law, to be
10receiving aid to families with dependent children, or of determining whether an
11individual meets the income limits under par. (a) 1m., 9., 10., 11., or 12., (am), or (e),
12the department shall exclude from the calculation of farm or self-employment
13income any amounts claimed for depreciation for income tax purposes.
AB24, s. 12 14Section 12. 49.46 (1) (e) of the statutes is amended to read:
AB24,5,2115 49.46 (1) (e) If an application under s. 49.47 (3) shows that the individual
16individual's income, determined in accordance with par. (ar), meets the income limits
17under s. 49.19, or that the individual meets the income and resource requirements
18under federal Title XVI or s. 49.77, or that the individual is an essential person, an
19accommodated person, or a patient in a public medical institution, the individual
20shall be granted the benefits enumerated under sub. (2) whether or not the
21individual requests or receives a grant of any of such aids.
AB24, s. 13 22Section 13. 49.46 (1) (L) of the statutes is repealed.
AB24, s. 14 23Section 14. 49.47 (4) (am) 1. of the statutes is amended to read:
AB24,6,424 49.47 (4) (am) 1. A pregnant woman whose family income , determined in
25accordance with par. (cg),
does not exceed 155% 155 percent of the poverty line for

1a family the size of the woman's family, except that, if a waiver under par. (j) or a
2change in the approved state plan under s. 49.46 (1) (am) 2. is in effect, the income
3limit is 185% 185 percent of the poverty line for a family the size of the woman's
4family in each state fiscal year after the 1994-95 state fiscal year.
AB24, s. 15 5Section 15. 49.47 (4) (am) 2. of the statutes is amended to read:
AB24,6,116 49.47 (4) (am) 2. A child who is under 6 years of age and whose family income,
7determined in accordance with par. (cg),
does not exceed 155% 155 percent of the
8poverty line for a family the size of the child's family, except that , if a waiver under
9par. (j) or a change in the approved state plan under s. 49.46 (1) (am) 2. is in effect,
10the income limit is 185% 185 percent of the poverty line for a family the size of the
11child's family in each state fiscal year after the 1994-95 state fiscal year.
AB24, s. 16 12Section 16. 49.47 (4) (c) 1. of the statutes is amended to read:
AB24,6,1813 49.47 (4) (c) 1. Except as provided in par. (am) and as limited by subd. 3.,
14eligibility exists if income, determined in accordance with par. (cg), does not exceed
15133 1/3% 133 1/3 percent of the maximum aid to families with dependent children
16payment under s. 49.19 (11) for the applicant's family size or the combined benefit
17amount available under supplemental security income under 42 USC 1381 to 1383c
18and state supplemental aid under s. 49.77, whichever is higher. In this subdivision
AB24,7,2 19(cg) 1. Except as provided in subd. 3., for purposes of determining whether an
20individual's income meets the income requirements under par. (c),
"income" includes
21earned or unearned income that would be included in determining eligibility for the
22individual or family under s. 49.19 or 49.77, or for the aged, blind , or disabled under
2342 USC 1381 to 1385. "Income" does not include and excludes earned or unearned
24income which that would be excluded in determining eligibility for the individual or

1family under s. 49.19 or 49.77, or for the aged, blind, or disabled individual under 42
2USC 1381
to 1385.
AB24, s. 17 3Section 17. 49.47 (4) (c) 3. of the statutes is amended to read:
AB24,7,74 49.47 (4) (c) 3. Except as provided in par. (am), no person is eligible for medical
5assistance under this section if the person's income, determined in accordance with
6par. (cg),
exceeds the maximum income levels that the U.S. department of health and
7human services sets for federal financial participation under 42 USC 1396b (f).
AB24, s. 18 8Section 18 . 49.47 (4) (cg) 3. of the statutes is created to read:
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