LRB-4354/1
TJD:bjk&kjf:rs
2009 - 2010 LEGISLATURE
February 25, 2010 - Introduced by Representatives Richards, Dexter, Pasch,
Berceau, Turner, Molepske Jr., Vruwink, Suder, Seidel, Benedict, Grigsby,
Shilling, Pocan, Stone
and Rhoades, cosponsored by Senators Kreitlow,
Vinehout, Lehman, Risser, Lassa, Taylor, Plale, Darling
and Wirch.
Referred to Committee on Health and Healthcare Reform.
AB779,1,12 1An Act to renumber and amend 153.85, 153.86 and 153.90; to amend 20.435
2(1) (hg), 146.37 (1g), 153.01 (intro.), 153.01 (4j) (b), 153.01 (8m), 153.05 (1) (b),
3153.05 (2m) (a), 153.05 (2m) (b), 153.05 (2r) (intro.), 153.05 (2s), 153.05 (3) (a),
4153.05 (3) (b), 153.05 (3) (c), 153.05 (8) (a), 153.05 (8) (b), 153.05 (9) (a), 153.05
5(9) (b), 153.05 (9) (c), 153.455 (4), 153.50 (3) (b) (intro.), 153.50 (3) (c), 153.50 (3)
6(d), 153.50 (3m), 153.50 (5) (a) 4. b., 153.50 (6) (a), 153.50 (6) (b), 153.50 (6) (c)
7(intro.), 153.55, 153.60 (1), 153.75 (2) (a), 153.75 (2) (c) and 895.043 (2); and to
8create
subchapter I (title) of chapter 153 [precedes 153.01], subchapter II (title)
9of chapter 153 [precedes 153.80], 153.80, 153.81 and 153.82 of the statutes;
10relating to: designation of a corporation to receive funding for electronic
11health information exchange, creation of a corporation, and making an
12appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the federal Health Information Technology for Economic
and Clinical Health Act (HITECH Act) regulates the exchange of health information

electronically. The HITECH Act allows the secretary of the U.S. Department of
Health and Human Services to award grants to promote the exchange of health
information electronically. A state may receive that grant itself or may designate a
nonprofit corporation that meets certain criteria to apply for and receive the federal
grants under the HITECH Act.
This bill allows the secretary of the Department of Health Services (DHS) to
designate a nonprofit corporation as the entity to apply for and receive federal
funding under the HITECH Act if the corporation meets all of the following criteria:
1. A purpose of the corporation, as written in its articles of incorporation or
bylaws, is to use information technology to improve health care quality and efficiency
through the authorized and secure electronic exchange and use of health
information.
2. Annually, the corporation reports to the secretary on statewide health
information exchange and how exchange efforts are enabling meaningful use of
certified electronic health record technology, as defined in federal law.
3. The corporation complies with the requirements to be a qualified
state-designated entity and to receive a grant under the HITECH Act.
4. The corporation's governing structure and bylaws allow it to consult and
consider recommendations from outside entities, as specified under the HITECH
Act.
5. The board of directors of the corporation includes as members the state
health officer, the state Medical Assistance program director, and one person whom
the governor selects. The board's members also include, with the goal of balancing
public and private health sector interests, at least one individual representing each
of the following categories: health care providers, health insurers or health plans,
employers who purchase or self-insure employee health care, health care consumers
or consumer advocates, and higher education.
6. The corporation agrees to fulfill purposes related to development and
maintenance of electronic health information exchange.
DHS may make payments to a corporation to support health information
exchange if the secretary of DHS determines that the corporation meets the same
conditions as a corporation that is designated as the entity to apply for and receive
federal funding under the HITECH Act.
The bill allows the secretary of DHS to organize and maintain a corporation for
purposes related to the development and maintenance of electronic health
information exchange. If the secretary organizes the corporation, the secretary must
appoint as initial members the same categories of individuals as are required for a
corporation to be designated to apply for and receive funding under the HITECH Act.
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:
AB779, s. 1
1Section 1. 20.435 (1) (hg) of the statutes is amended to read:
AB779,3,72 20.435 (1) (hg) General program operations; health care information. The
3amounts in the schedule to fund the activities of the department of health services
4under ch. 153 and, to contract with the data organization under s. 153.05 (2r), and
5to make payments to a corporation under s. 153.81 to support health information
6exchange
. The contract fees paid under s. 153.05 (6m) and assessments paid under
7s. 153.60 shall be credited to this appropriation account.
AB779, s. 2 8Section 2. 146.37 (1g) of the statutes, as affected by 2009 Wisconsin Act 113,
9is amended to read:
AB779,3,2410 146.37 (1g) Except as provided in s. 153.85 153.76, no person acting in good
11faith who participates in the review or evaluation of the services of health care
12providers or facilities or the charges for such services conducted in connection with
13any program organized and operated to help improve the quality of health care, to
14avoid improper utilization of the services of health care providers or facilities or to
15determine the reasonable charges for such services, or who participates in the
16obtaining of health care information under subch. I of ch. 153, is liable for any civil
17damages as a result of any act or omission by such person in the course of such review
18or evaluation. Acts and omissions to which this subsection applies include, but are
19not limited to, acts or omissions by peer review committees or hospital governing
20bodies in censuring, reprimanding, limiting or revoking hospital staff privileges or
21notifying the medical examining board or podiatry affiliated credentialing board
22under s. 50.36 or taking any other disciplinary action against a health care provider
23or facility and acts or omissions by a medical director in reviewing the performance
24of emergency medical technicians or ambulance service providers.
AB779, s. 3
1Section 3. Subchapter I (title) of chapter 153 [precedes 153.01] of the statutes
2is created to read:
AB779,4,33 CHAPTER 153
AB779,4,64 subchapter I
5 information collection and
6 dissemination
AB779, s. 4 7Section 4. 153.01 (intro.) of the statutes is amended to read:
AB779,4,8 8153.01 Definitions. (intro.) In this chapter subchapter:
AB779, s. 5 9Section 5. 153.01 (4j) (b) of the statutes is amended to read:
AB779,4,1110 153.01 (4j) (b) Receives oversight with respect to services performed by the
11entity under this chapter subchapter from the secretary of health services.
AB779, s. 6 12Section 6. 153.01 (8m) of the statutes is amended to read:
AB779,4,1513 153.01 (8m) "Public health authority" means the department or a person
14acting under this chapter subchapter under a grant of authority from or contract
15with the department.
AB779, s. 7 16Section 7. 153.05 (1) (b) of the statutes is amended to read:
AB779,4,2517 153.05 (1) (b) The entity under contract under sub. (2m) (a) shall collect from
18hospitals and ambulatory surgery centers the health care information required of
19hospitals and ambulatory surgery centers by the department under ch. 153, 2001
20stats., and the rules promulgated under ch. 153, 2001 stats., including, by the date
21"that is 18 months after the date of the contract under sub. (2m) (a), outpatient
22hospital-based services. The entity shall analyze and disseminate that health care
23information, as adjusted for case mix and severity, in the manner required under this
24chapter subchapter, under ch. 153, 2001 stats., and under the rules promulgated
25under ch. 153, 2001 stats., and in language that is understandable to laypersons.
AB779, s. 8
1Section 8. 153.05 (2m) (a) of the statutes is amended to read:
AB779,5,102 153.05 (2m) (a) Notwithstanding s. 16.75 (1), (2), and (3m), by the 2nd month
3after July 26, 2003, the department of administration shall, from the appropriation
4under s. 20.505 (1) (im), contract with an entity to perform services under this
5chapter subchapter that are specified for the entity with respect to the collection,
6analysis, and dissemination of health care information of hospitals and ambulatory
7surgery centers. The department of administration may not, by this contract,
8require from the entity any collection, analysis, or dissemination of health care
9information of hospitals and ambulatory surgery centers that is in addition to that
10required under this chapter subchapter.
AB779, s. 9 11Section 9. 153.05 (2m) (b) of the statutes is amended to read:
AB779,5,2112 153.05 (2m) (b) Biennially, the group specified under s. 153.01 (4j) (b) shall
13review the entity's performance, including the timeliness and quality of the reports
14generated by the entity. If the group is dissatisfied with the entity's performance, the
15group may recommend to the department of administration that that department
16use a competitive request-for-proposal process to solicit offers from other
17organizations for performance of the services. If no organization responds to the
18request for proposal, the department of health services shall perform the services
19specified for the entity with respect to the collection, analysis, and dissemination of
20health care information of hospitals and ambulatory surgery centers under this
21chapter subchapter.
AB779, s. 10 22Section 10. 153.05 (2r) (intro.) of the statutes is amended to read:
AB779,6,623 153.05 (2r) (intro.) Notwithstanding s. 16.75 (1), (2), and (3m), from the
24appropriation account under s. 20.515 (1) (ut) the department of employee trust
25funds may expend up to $150,000, and from the appropriation accounts under s.

120.435 (1) (hg) and (hi) the department of health services, in its capacity as a public
2health authority, may expend moneys, to contract with a data organization to
3perform services under this chapter subchapter that are specified for the data
4organization under sub. (1) (c) or, if s. 153.455 (4) applies, for the department of
5health services to perform or contract for the performance of these services. As a
6condition of the contract under this subsection, all of the following apply:
AB779, s. 11 7Section 11. 153.05 (2s) of the statutes is amended to read:
AB779,6,118 153.05 (2s) Annually, the department of health services and the department
9of employee trust funds shall jointly prepare and submit under s. 13.172 (3) to
10standing committees of the legislature with jurisdiction over health issues a report
11on the activities of the data organization under this chapter subchapter.
AB779, s. 12 12Section 12. 153.05 (3) (a) of the statutes is amended to read:
AB779,6,1713 153.05 (3) (a) Upon request of the department for health care information
14relating to health care providers other than hospitals and ambulatory surgery
15centers and, if s. 153.455 (4) applies, for health care claims information as specified
16in sub. (1) (c), state agencies shall provide that information to the department for use
17in preparing reports under this chapter subchapter.
AB779, s. 13 18Section 13. 153.05 (3) (b) of the statutes is amended to read:
AB779,6,2219 153.05 (3) (b) Upon request of the entity under contract under sub. (2m) (a) for
20health care information relating to hospitals and ambulatory surgery centers, state
21agencies shall provide that health care information to the entity for use in preparing
22reports under this chapter subchapter.
AB779, s. 14 23Section 14. 153.05 (3) (c) of the statutes is amended to read:
AB779,7,424 153.05 (3) (c) Upon request of the data organization under contract under sub.
25(2r) for health care claims information, insurers and administrators may provide the

1health care claims information to the data organization for use in preparing reports
2and developing and maintaining a central data repository under this chapter
3subchapter, and, if s. 153.455 (4) applies, insurers and administrators may provide
4the health care claims information as requested by the department.
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