AB646: Bill Text

LRB-3595/3

MDK:cjs&bjk:nwn

2007 - 2008 LEGISLATURE

2007 Assembly BILL 646

December 21, 2007 - Introduced by Representatives Rhoades and Black, cosponsored by Senators Risser and Olsen. Referred to Committee on State Affairs.

AB646,1,7 An Act to repeal 13.094, 233.04 (7) (f), 233.04 (8), 233.05 (3) and 233.27; to renumber and amend 15.96; to amend 15.07 (1) (a) 6., 15.07 (4), 15.96 (title), 233.02 (1) (a), 233.02 (1) (am), 233.02 (8), 233.03 (11), 233.04 (1), 233.04 (3b) (a) 1., 233.04 (10) and 233.10 (2) (intro.); to repeal and recreate 15.07 (4); and to create 15.96 (2) and 233.20 (3m) of the statutes; relating to: the University of Wisconsin Hospitals and Clinics Board and the University of Wisconsin Hospitals and Clinics Authority.

Analysis by the Legislative Reference Bureau

Under current law, the board of directors of the University of Wisconsin Hospitals and Clinics Authority (UWHCA) must contract with the University of Wisconsin Hospitals and Clinics Board (UWHCB) for all nonprofessional services performed at the UWHCA. This bill makes various changes to current law regarding both the UWHCA and UWHCB.

UWHCA changes. The bill changes the membership of the board of directors of the UWHCA. Under current law, three members of the board of directors are appointed by the governor, with the advice and consent of the senate, for three-year terms. Under this bill, the governor must appoint, with the advise and consent of the senate, six members for five-year terms. The bill also allows each chair of the joint committee on finance (JCF) to appoint any member of the legislature as a member of the board of directors. Current law limits each chair's appointment authority to a member of the JCF, rather than to any member of the legislature. The bill also changes the quorum required for a meeting of the board of directors to eight voting members, rather than the six voting members required under current law.

The bill also creates requirements that apply to bonds issued by the UWHCA, or indebtedness that the UWHCA incurs to the Wisconsin Health and Educational Facilities Authority. The bill prohibits the UWHCA from issuing bonds or incurring such indebtedness unless the bonds or indebtedness are a refinancing of existing bonds or indebtedness, or unless the JCF votes to approve the bonds or indebtedness and the secretary of administration, or his or her designee, has issued a written approval.

If the bonds or indebtedness are not a refinancing, or if the votes or approvals described above have not occurred, then the bill prohibits the UWHCA from issuing the bonds or incurring the indebtedness unless the UWHCA has a bond rating specified in the bill and the UWHCA notifies the JCF and the secretary of administration about the amount, and the use of the proceeds, of the proposed bonds or indebtedness. In addition, the UWHCA must wait 30 working days after providing such notifications. The bill allows the UWHCA to issue the bonds or incur the indebtedness only if the following conditions are satisfied: 1) the JCF does not notify the UWHCA before the end of the 30-day waiting period that JCF has scheduled a meeting to review the proposed bonds or indebtedness; and 2) the secretary of DOA does not notify the UWHCA before the end of the 30-day waiting period that the secretary will conduct further review of the proposed bonds or indebtedness.

In addition, the bill repeals a prohibition under current law on the UWHCA issuing bonds, or incurring indebtedness described above, if the aggregate principal amount of the UWHCA's outstanding bonds, together with all such indebtedness, would exceed $235,000,000. Also, the bill eliminates a requirement under current law that the UWHCA must use the building commission as financial consultant for the issuance of bonds.

The bill also does the following:

1. Eliminates a requirement for the JCF to review certain agreements between the board of directors of the UWHCA and the board of directors of the University of Wisconsin System (UW system).

2. Requires the UWHCA to maintain, control, and supervise the use of the University of Wisconsin Hospitals and Clinics for the purpose of delivering high-quality health care, rather than high-quality and comprehensive health care as required under current law.

3. Eliminates a requirement under current law that the board of directors must operate a statewide poison control center, but, except for correcting the name of a children's hospital, does not affect a requirement under current law for the board of directors to operate such a center if the children's hospital ceases to operate such a center.

4. Repeals outdated references to a payment that the Board of Regents of the UW system was required to make to the UWHCA board of directors in 1996.

UWHCB changes. The bill changes the membership of the UWHCB in the same manner that the bill changes the membership of the board of directors of the UWHCA. Under current law, three members of the UWHCB are appointed by the governor, with the advice and consent of the senate, for three-year terms. Under this bill, the governor must appoint, with the advise and consent of the senate, six members for five-year terms. The bill also allows each chair of the joint committee on finance (JCF) to appoint any member of the legislature as a member. Current law limits each chair's appointment authority to a member of the JCF, rather than to any member of the legislature. The bill also provides that the quorum required for a meeting of the UWHCB is eight voting members.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB646, s. 1 Section 1. 13.094 of the statutes is repealed.

AB646, s. 2 Section 2. 15.07 (1) (a) 6. of the statutes is amended to read:

AB646,3,5 15.07 (1) (a) 6. Members of the University of Wisconsin Hospitals and Clinics Board appointed under s. 15.96 (8) (1) (h) shall be appointed by the governor without senate confirmation.

AB646, s. 3 Section 3. 15.07 (4) of the statutes is amended to read:

AB646,3,12 15.07 (4) Quorum. A majority of the membership of a board constitutes a quorum to do business and, unless a more restrictive provision is adopted by the board, a majority of a quorum may act in any matter within the jurisdiction of the board. This subsection does not apply to actions of the University of Wisconsin Hospitals and Clinics Board, the ethics board, or the school district boundary appeal board as provided in ss. 15.96 (2), 19.47 (4) and 117.05 (2) (a).

AB646, s. 4 Section 4. 15.07 (4) of the statutes, as affected by 2007 Wisconsin Act 1 and 2007 Wisconsin Act .... (this act), is repealed and recreated to read:

AB646,4,3 15.07 (4) Quorum. A majority of the membership of a board constitutes a quorum to do business and, unless a more restrictive provision is adopted by the board, a majority of a quorum may act in any matter within the jurisdiction of the board. This subsection does not apply to actions of the government accountability board, the University of Wisconsin Hospitals and Clinics Board, or the school district boundary appeal board as provided in ss. 5.05 (1e), 15.96 (2), and 117.05 (2) (a).

AB646, s. 5 Section 5. 15.96 (title) of the statutes is amended to read:

AB646,4,6 15.96 (title) University of Wisconsin Hospitals and Clinics Board; creation.

AB646, s. 6 Section 6. 15.96 of the statutes is renumbered 15.96 (1), and 15.96 (1) (a) and (am), as renumbered, are amended to read.

AB646,4,10 15.96 (1) (a) Three Six members nominated by the governor, and with the advice and consent of the senate appointed, for 3-year 5-year terms.

AB646,4,12 (am) Each cochairperson of the joint committee on finance or a member of the committee legislature designated by that cochairperson.

AB646, s. 7 Section 7. 15.96 (2) of the statutes is created to read:

AB646,4,16 15.96 (2) Eight voting members of the University of Wisconsin Hospitals and Clinics Board constitute a quorum for the purpose of conducting the business and exercising the powers of the board, notwithstanding the existence of a vacancy.

AB646, s. 8 Section 8. 233.02 (1) (a) of the statutes is amended to read:

AB646,4,19 233.02 (1) (a) Three Six members nominated by the governor, and with the advice and consent of the senate appointed, for 3-year 5-year terms.

AB646, s. 9 Section 9. 233.02 (1) (am) of the statutes is amended to read:

AB646,4,22 233.02 (1) (am) Each cochairperson of the joint committee on finance or a member of the committee legislature designated by that cochairperson.

AB646, s. 10 Section 10. 233.02 (8) of the statutes is amended to read:

AB646,5,7 233.02 (8) The members of the board of directors shall annually elect a chairperson and may elect other officers as they consider appropriate. Six Eight voting members of the board of directors constitute a quorum for the purpose of conducting the business and exercising the powers of the authority, notwithstanding the existence of any vacancy. The members of the board of directors specified under sub. (1) (c) and (g) may not be the chairperson of the board of directors for purposes of 1995 Wisconsin Act 27, section 9159 (2). The board of directors may take action upon a vote of a majority of the members present, unless the bylaws of the authority require a larger number.

AB646, s. 11 Section 11. 233.03 (11) of the statutes is amended to read:

AB646,5,9 233.03 (11) Issue bonds in accordance with ss. 233.20 to 233.27 233.26.

AB646, s. 12 Section 12. 233.04 (1) of the statutes is amended to read:

AB646,5,17 233.04 (1) By October 1, 1997, and annually thereafter, submit to the chief clerk of each house of the legislature under s. 13.172 (2), the president of the board of regents, the secretary of administration and the governor a report on the patient care, education, research and community service activities and accomplishments of the authority and an audited financial statement, certified by an independent auditor, of the authority's operations. The financial statement shall include a separate accounting of the use of the payment under sub. (7) (f).

AB646, s. 13 Section 13. 233.04 (3b) (a) 1. of the statutes is amended to read:

AB646,5,21 233.04 (3b) (a) 1. Delivering comprehensive, high-quality health care to patients using the hospitals and to those seeking care from its programs, including a commitment to provide such care for the medically indigent.

AB646, s. 14 Section 14. 233.04 (7) (f) of the statutes is repealed.

AB646, s. 15 Section 15. 233.04 (8) of the statutes is repealed.

AB646, s. 16 Section 16. 233.04 (10) of the statutes is amended to read:

AB646,6,4 233.04 (10) Operate a poison control center under s. 146.57. If Children's Hospital of Wisconsin in the city of Milwaukee and Health System ceases to operate a poison control center under s. 146.57, the authority shall administer a statewide poison control program.