SB536,28,221 102.28 (2) (c) 2. The department may revoke an election made by an employer
22under par. (bm), upon giving the employer 10 days' written notice, if the department
23finds that the employer's financial condition is inadequate to pay its employees'
24claims for compensation, that the employer has received an excessive number of

1claims for compensation, or that the employer has failed to discharge faithfully its
2obligations under this chapter and the rules of the department.
SB536,46 3Section 46. 102.28 (2) (d) of the statutes is amended to read:
SB536,28,94 102.28 (2) (d) Effect of insuring with unauthorized insurer. An employer who
5procures an exemption under par. (b) and thereafter
If an employer that is exempted
6under par. (b) or (bm) from the duty to insure under par. (a)
enters into any agreement
7for excess insurance coverage with an insurer not authorized to do business in this
8state, the employer shall report that agreement to the department immediately. The
9placing of such coverage shall not by itself be grounds for revocation of the exemption.
SB536,47 10Section 47. 102.28 (2) (e) of the statutes is created to read:
SB536,28,1211 102.28 (2) (e) Rules. The department shall promulgate rules to implement this
12subsection.
SB536,48 13Section 48. 102.28 (7) (a) of the statutes is amended to read:
SB536,29,314 102.28 (7) (a) If an employer who is currently or was formerly exempted by
15written order of the department under sub. (2) (b) is unable to pay an award,
16judgment is rendered in accordance with s. 102.20 against that employer, and
17execution is levied and returned unsatisfied in whole or in part, payments for the
18employer's liability shall be made from the fund established under sub. (8). If a
19currently or formerly exempted employer files for bankruptcy and not less than 60
20days after that filing the department has reason to believe that compensation
21payments due are not being paid, the department in its discretion may make
22payment for the employer's liability from the fund established under sub. (8). The
23secretary of administration shall proceed to recover such those payments from the
24employer or the employer's receiver or trustee in bankruptcy, and may commence an
25action or proceeding or file a claim therefor for those payments. The attorney general

1shall appear on behalf of the secretary of administration in any such action or
2proceeding. All moneys recovered in any such action or proceeding shall be paid into
3the fund established under sub. (8).
SB536,49 4Section 49. 102.28 (7) (b) of the statutes is renumbered 102.28 (7) (b) 1. and
5amended to read:
SB536,29,186 102.28 (7) (b) 1. Each employer exempted by written order of the department
7under sub. (2) (b) shall pay into the fund established by sub. (8) a sum equal to that
8assessed against each of the other such exempt employers upon the issuance of an
9initial order. The order
an initial assessment based on orders of the department as
10provided in subd. 2. An order of the department requiring exempt employers to pay
11into that fund
shall provide for a sum an amount that is sufficient to secure
12estimated payments of the an insolvent exempt employer due for the period up to the
13date of the order and for one year following the date of the order and to pay the
14estimated cost of insurance carrier or insurance service organization services under
15par. (c). Payments ordered to be made to the fund shall be paid to the department
16within 30 days after the date of the order. If additional moneys are required, further
17assessments shall be made based on orders of the department with as provided under
18subd. 2.
SB536,30,2 192. An initial or further assessment under subd. 1. shall be prorated on the basis
20of the gross payroll for this state of the exempt employer, as reported to the
21department for the previous calendar year for unemployment insurance purposes
22under ch. 108. If the or, if an exempt employer is not covered under ch. 108, then the
23department shall determine
on the basis of the comparable gross payroll for the
24exempt employer as determined by the department. If payment of any assessment
25made under this subsection subd. 1. is not made within 30 days of after the date of

1the order of the department, the attorney general may appear on behalf of the state
2to collect the assessment.
SB536,50 3Section 50. 102.28 (7) (bm) of the statutes is created to read:
SB536,30,44 102.28 (7) (bm) The department may not do any of the following:
SB536,30,75 1. Require an employer that elects under sub. (2) (bm) to self-insure its liability
6for the payment of compensation under this chapter to pay into the fund established
7under sub. (8).
SB536,30,118 2. Make any payments from the fund established under sub. (8) for the liability
9under this chapter of an employer that elects under sub. (2) (bm) to self-insure its
10liability for the payment of compensation under this chapter, whether currently or
11formerly exempt from the duty to insure under sub. (2) (a).
SB536,51 12Section 51. 102.28 (7) (d) of the statutes is created to read:
SB536,30,1413 102.28 (7) (d) The department shall promulgate rules to implement this
14subsection.
SB536,52 15Section 52. 102.29 (1) (b) 2. of the statutes is amended to read:
SB536,30,2316 102.29 (1) (b) 2. Out of the balance remaining after the deduction and payment
17specified in subd. 1., the employer, the insurance carrier, or, if applicable, the
18uninsured employers fund or the work injury supplemental benefit fund shall be
19reimbursed for all payments made by the employer, insurance carrier, or
20department, or which the employer, insurance carrier, or department may be
21obligated to make in the future, under this chapter, except that the employer,
22insurance carrier, or department shall not be reimbursed for any payments made or
23to be made under s. 102.18 (1) (b) 3. or (bp), 102.22, 102.35 (3), 102.57, or 102.60.
SB536,53 24Section 53. 102.29 (12) of the statutes is created to read:
SB536,31,4
1102.29 (12) No individual who is an employee of an entity described in s. 102.07
2(20) for purposes of this chapter and who makes a claim for compensation under this
3chapter may make a claim or maintain an action in tort against the person described
4in s. 102.07 (20) who received the services from which the claim arose.
SB536,54 5Section 54. 102.31 (2) (b) 2. of the statutes is amended to read:
SB536,31,126 102.31 (2) (b) 2. Regardless of whether the notices required under par. (a) have
7been given, a cancellation or termination is effective upon the effective date of
8replacement insurance coverage obtained by the employer or , the effective date of an
9order under s. 102.28 (2) (b) exempting the employer from carrying the duty to carry
10insurance under s. 102.28 (2) (a), or the effective date of an election by an employer
11under s. 102.28 (2) (bm) to self-insure its liability for the payment of compensation
12under this chapter
.
SB536,55 13Section 55. 102.315 (2) of the statutes is amended to read:
SB536,31,2114 102.315 (2) Employee leasing company liable. An employee leasing company
15is liable under s. 102.03 for all compensation payable under this chapter to a leased
16employee, including any payments required under s. 102.16 (3), 102.18 (1) (b) 3. or
17(bp), 102.22 (1), 102.35 (3), 102.57, or 102.60. Except as permitted under s. 102.29,
18an employee leasing company may not seek or receive reimbursement from another
19employer for any payments made as a result of that liability. An employee leasing
20company is not liable under s. 102.03 for any compensation payable under this
21chapter to an employee of a client who is not a leased employee.
SB536,56 22Section 56. 102.425 (1) (cm) of the statutes is created to read:
SB536,31,2423 102.425 (1) (cm) "Licensed pharmacy" means a pharmacy licensed under s.
24450.06 or 450.065.
SB536,57 25Section 57. 102.425 (3) (a) (intro.) of the statutes is amended to read:
SB536,32,4
1102.425 (3) (a) (intro.) The liability of an employer or insurer for the cost of a
2prescription drug dispensed under sub. (2) for outpatient use by an injured employee,
3including a prescription drug dispensed outside of a licensed pharmacy,
is limited to
4the sum of all of the following:
SB536,58 5Section 58. 102.425 (3) (a) 1. of the statutes is amended to read:
SB536,32,106 102.425 (3) (a) 1. The average wholesale price of the prescription drug as of the
7date on which the prescription drug is dispensed, as quoted in the Drug Topics Red
8Book, published by Medical Economics Company, Inc., or its successor, or, if that book
9is discontinued and becomes unavailable, as quoted in another nationally recognized
10pricing source determined by the department
.
SB536,59 11Section 59. 102.425 (4m) (b) of the statutes, as affected by 2015 Wisconsin Act
1255
, is amended to read:
SB536,32,2213 102.425 (4m) (b) An employer or insurer that disputes the reasonableness of
14the amount charged for a prescription drug dispensed under sub. (2) for outpatient
15use by an injured employee or the department or division under sub. (4) (b) or s.
16102.16 (1m) (c) or 102.18 (1) (bg) 3. shall provide, within 30 days after receiving a
17completed bill for the prescription drug, reasonable written notice to the pharmacist
18or practitioner that the charge is being disputed. After receiving reasonable written
19notice under this paragraph or under sub. (4) (b) or s. 102.16 (1m) (c) or 102.18 (1)
20(bg) 1. 3. that a prescription drug charge is being disputed, a pharmacist or
21practitioner may not collect the disputed charge from, or bring an action for collection
22of the disputed charge against, the employee who received the prescription drug.
SB536,60 23Section 60. 102.43 (5) (c) of the statutes is amended to read:
SB536,33,1024 102.43 (5) (c) Compensation for temporary disability on account of receiving
25instruction under s. 102.61 (1) or (1m) shall not be reduced under sub. (2) on account

1of any wages earned for the first 24 hours worked by an employee during a week in
2which the employee is receiving that instruction. If an employee performs more than
324 hours of work during a week in which the employee is receiving that instruction,
4all wages earned for hours worked in excess of 24 during that week shall be offset
5against the employee's average weekly wage in calculating compensation for
6temporary disability under sub. (2). An employee who is receiving compensation for
7temporary disability on account of receiving instruction under s. 102.61 (1) or (1m)
8shall report any wages earned during the period in which the employee is receiving
9that instruction to the insurance carrier or self-insured employer paying that
10compensation. This paragraph does not apply after April 30, 2014.
SB536,61 11Section 61. 102.43 (9) (e) of the statutes is created to read:
SB536,33,1512 102.43 (9) (e) The employee's employment with the employer has been
13suspended or terminated due to misconduct, as defined in s. 108.04 (5), or substantial
14fault, as defined in s. 108.04 (5g) (a), by the employee connected with the employee's
15work.
SB536,62 16Section 62. 102.44 (1) (ag) of the statutes, as affected by 2015 Wisconsin Act
1755
, is amended to read:
SB536,34,218 102.44 (1) (ag) Notwithstanding any other provision of this chapter, every
19employee who is receiving compensation under this chapter for permanent total
20disability or continuous temporary total disability more than 24 months after the
21date of injury resulting from an injury that occurred prior to January 1, 2001 2003,
22shall receive supplemental benefits that shall be payable by the employer or the
23employer's insurance carrier, or in the case of benefits payable to an employee under
24s. 102.66, shall be paid by the department out of the fund created under s. 102.65.
25Those supplemental benefits shall be paid only for weeks of disability occurring after

1January 1, 2003 2005, and shall continue during the period of such total disability
2subsequent to that date.
SB536,63 3Section 63. 102.44 (1) (am) of the statutes is amended to read:
SB536,34,84 102.44 (1) (am) If the employee is receiving the maximum weekly benefits in
5effect at the time of the injury, the supplemental benefit for a week of disability
6occurring after May 1, 2010 the effective date of this paragraph .... [LRB inserts
7date]
, shall be an amount that, when added to the regular benefit established for the
8case, shall equal $582 $669.
SB536,64 9Section 64. 102.44 (1) (b) of the statutes is amended to read:
SB536,34,1510 102.44 (1) (b) If the employee is receiving a weekly benefit that is less than the
11maximum benefit that was in effect on the date of the injury, the supplemental
12benefit for a week of disability occurring after May 1, 2010 the effective date of this
13paragraph .... [LRB inserts date]
, shall be an amount sufficient to bring the total
14weekly benefits to the same proportion of $582 $669 as the employee's weekly benefit
15bears to the maximum in effect on the date of injury.
SB536,65 16Section 65. 102.44 (4m) of the statutes is created to read:
SB536,35,217 102.44 (4m) (a) The department shall promulgate rules establishing minimum
18permanent disability ratings for amputation levels, losses of motion, sensory losses,
19and surgical procedures resulting from injuries for which permanent partial
20disability is claimed under sub. (3) or (4). At least once every 8 years the department
21shall review and revise those minimum permanent disability ratings as necessary
22to reflect advances in the science of medicine. Before the department may revise
23those ratings, the department shall appoint a medical advisory committee under s.
24227.13, composed of physicians practicing in one or more areas of specialization or
25treating disciplines within the medical profession, to review and recommend

1revision of those ratings, based on typical loss of function, to the department and the
2council on worker's compensation.
SB536,35,123 (b) In considering an individual for appointment to the medical advisory
4committee under par. (a), the department shall consider the individual's training and
5experience, the number of years the individual has been practicing in the individual's
6area of specialization or treating discipline, any certifications by a recognized
7medical speciality board or other agency held by the individual, any
8recommendations made by organizations that regulate or promote profession
9standards in the area of specialization or treating discipline in which the individual
10practices, and any other factors that the department determines are relevant to the
11individual's knowledge and ability to serve as a member of the medical advisory
12committee.
SB536,66 13Section 66. 102.58 of the statutes, as affected by 2015 Wisconsin Act 55, is
14amended to read:
SB536,36,5 15102.58 Decreased compensation. If injury is caused by the failure of the
16employee to use safety devices that are provided in accordance with any statute, rule,
17or order of the department of safety and professional services and that are
18adequately maintained, and the use of which is reasonably enforced by the employer,
19or if injury results from the employee's failure to obey any reasonable rule adopted
20and reasonably enforced by the employer for the safety of the employee and of which
21the employee has notice, or if injury results from the intoxication of the employee by
22alcohol beverages, as defined in s. 125.02 (1), or use of a controlled substance, as
23defined in s. 961.01 (4), or a controlled substance analog, as defined in s. 961.01 (4m),

24the compensation and death benefit provided in this chapter shall be reduced by 15
25percent but the total reduction may not exceed $15,000. If an employee violates the

1employer's policy concerning employee drug or alcohol use and is injured, and if that
2violation is causal to the employee's injury, no compensation or death benefits shall
3be payable to the injured employee or a dependent of the injured employee. Nothing
4in this section shall reduce or eliminate an employer's liability for incidental
5compensation under s. 102.42 (1) to (8) or drug treatment under s. 102.425.
SB536,67 6Section 67. 102.75 (1) of the statutes, as affected by 2015 Wisconsin Act 55,
7is amended to read:
SB536,36,238 102.75 (1) The department shall assess upon and collect from each licensed
9worker's compensation insurance carrier and from each employer exempted under
10s. 102.28 (2) by special order or by rule, (b) or (bm) from the duty to carry insurance
11under s. 102.28 (2) (a)
the proportion of total costs and expenses incurred by the
12council on worker's compensation for travel and research and by the department, the
13division, and the commission in the administration of this chapter for the current
14fiscal year, plus any deficiencies in collections and anticipated costs from the
15previous fiscal year, that the total indemnity paid or payable under this chapter by
16each such carrier and exempt employer in worker's compensation cases initially
17closed during the preceding calendar year, other than for increased, double, or treble
18compensation, bore to the total indemnity paid in cases closed the previous calendar
19year under this chapter by all carriers and exempt employers, other than for
20increased, double, or treble compensation. The council on worker's compensation,
21the division, and the commission shall annually certify any costs and expenses for
22worker's compensation activities to the department at such time as the secretary
23requires.
SB536,68 24Section 68. 102.75 (2) of the statutes, as affected by 2015 Wisconsin Act 55,
25is amended to read:
SB536,37,12
1102.75 (2) The department shall require each licensed worker's compensation
2insurance carrier and employer exempted under s. 102.28 (2) (b) or (bm) from the
3duty to insure under s. 102.28 (2) (a) to make the payments required under sub. (1)
4for each fiscal year on such dates as the department prescribes. The department
5shall also require each licensed worker's compensation insurance carrier to make the
6payments required under sub. (1g) for each fiscal year on those dates. Each such
7payment shall be a sum equal to a proportionate share of the annual costs and
8expenses assessed upon each carrier and employer as estimated by the department.
9Interest shall accrue on amounts not paid within 30 days after the date prescribed
10by the department under this subsection at the rate of 1 percent per month. All
11interest payments received under this subsection shall be deposited in the fund
12established under s. 102.65.
SB536,69 13Section 69. 102.75 (4) of the statutes is amended to read:
SB536,37,1814 102.75 (4) From the appropriation under s. 20.445 (1) (ra), the department
15shall allocate the amounts that it collects in application fees from employers
16applying for exemption under s. 102.28 (2) (b) and the annual amount that it collects
17from employers that have been exempted under s. 102.28 (2) (b) to fund the activities
18of the department under s. 102.28 (2) (b) and (c) with respect to those employers.
SB536,70 19Section 70. 102.81 (1) (a) of the statutes is amended to read:
SB536,38,220 102.81 (1) (a) If an employee of an uninsured employer, other than an employee
21who is eligible to receive alternative benefits under s. 102.28 (3), suffers an injury for
22which the uninsured employer is liable under s. 102.03, the department or the
23department's reinsurer shall pay to or on behalf of the injured employee or to the
24employee's dependents an amount equal to the compensation owed them by the

1uninsured employer under this chapter except penalties and interest due under ss.
2102.16 (3), 102.18 (1) (b) 3. and (bp), 102.22 (1), 102.35 (3), 102.57, and 102.60.
SB536,71 3Section 71. 108.10 (4) of the statutes is amended to read:
SB536,38,124 108.10 (4) The department or the employing unit may commence action for the
5judicial review of a commission decision under this section, provided the department,
6or the employing unit, after exhausting the remedies provided under this section, has
7commenced such action within 30 days after such decision was mailed to the
8employing unit's last-known address. The scope of judicial review, and the manner
9thereof insofar as applicable, shall be the same as that provided in s. 108.09 (7). In
10an action commenced by an employing unit under this section, the department shall
11be an adverse party a defendant under s. 102.23 (1) (a) and shall be named as a party
12defendant in the summons and complaint commencing the action.
SB536,72 13Section 72. 165.60 of the statutes is amended to read:
SB536,38,24 14165.60 Law enforcement. The department of justice is authorized to enforce
15ss. 101.123 (2), (2m), and (8), 175.60 (17) (e), 944.30 (1m), 944.31, 944.33, 944.34,
16945.02 (2), 945.03 (1m), and 945.04 (1m) and ch. 108 and, with respect to a false
17statement submitted or made under s. 175.60 (7) (b) or (15) (b) 2. or as described
18under s. 175.60 (17) (c), to enforce s. 946.32, is authorized to assist the department
19of workforce development in the investigation and prosecution of suspected
20fraudulent activity related to worker's compensation as provided in s. 102.125,
and
21is invested with the powers conferred by law upon sheriffs and municipal police
22officers in the performance of those duties. This section does not deprive or relieve
23sheriffs, constables, and other local police officers of the power and duty to enforce
24those sections, and those officers shall likewise enforce those sections.
SB536,73 25Section 73. Nonstatutory provisions.
SB536,39,5
1(1) Fraud investigation and prosecution; department of justice position
2authorization.
The authorized FTE positions for the department of justice are
3increased by 1.0 PR-S position, to be funded from the appropriation under section
420.455 (2) (k) of the statutes, for the purpose of investigating and prosecuting
5fraudulent activity related to worker's compensation.
SB536,74 6Section 74. Fiscal changes.
SB536,39,147 (1) Replacement of uninsured employers fund computer system. In the
8schedule under section 20.005 (3) of the statutes for the appropriation to the
9department of workforce development under section 20.445 (1) (ra) of the statutes,
10as affected by the acts of 2015, the dollar amount for fiscal year 2015-16 is increased
11by $200,000, and the dollar amount for fiscal year 2016-17 is increased by $796,000,
12to replace the computer system used for the accounting of collections and other
13moneys received for the uninsured employers fund and of payments made from that
14fund.
SB536,75 15Section 75 . Initial applicability.
SB536,39,1916 (1) Judicial review of worker's compensation decisions. The treatment of
17sections 102.23 (1) (a), (c), and (cm) and 108.10 (4) of the statutes first applies to an
18action for the review of an order or award of the labor and industry review
19commission commenced in circuit court on the effective date of this subsection.
SB536,39,2320 (2) Administrative review of worker's compensation decisions. The treatment
21of section 102.18 (3) and (4) (b) of the statutes first applies to a petition for the review
22of a decision of a department of workforce development hearing examiner filed with
23the labor and industry review commission on the effective date of this subsection.
SB536,76 24Section 76. Effective dates. This act takes effect on the day after publication,
25except as follows:
SB536,40,3
1(1) Judicial review of worker's compensation decisions. The treatment of
2sections 102.23 (1) (a), (c), and (cm) and 108.10 (4) of the statutes and Section 75 (1)
3of this act take effect on July 1, 2016.
SB536,40,64 (2) Administrative review of worker's compensation decisions. The treatment
5of section 102.18 (3) and (4) (b) of the statutes and Section 75 (2) of this act take effect
6on July 1, 2016.
SB536,40,77 (End)
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