LRB-5069/4
TAY&KSH:kmg:jlb
1995 - 1996 LEGISLATURE
February 9, 1996 - Introduced by Senator Weeden, cosponsored by Representative
Brancel. Referred to Committee on State Government Operations and
Corrections.
SB536,1,8 1An Act to renumber 227.43 (2) and 227.43 (2m); to renumber and amend
2227.43 (4) and 227.43 (5); to amend 227.43 (title); and to create 20.505 (4) (kp),
346.03 (42), 49.32 (12), 227.43 (1) (bu) and (by), 227.43 (2) (c) and (d), 227.43 (3)
4(c) and (d) and 227.43 (4) (c) and (d) of the statutes; relating to: granting
5authority to the division of hearings and appeals in the department of
6administration to hold administrative hearings for the department of health
7and family services and the department of industry, labor and job development,
8granting rule-making authority and making appropriations.
Analysis by the Legislative Reference Bureau
Under current law, the division of hearings and appeals (DHA) in the
department of administration (DOA) has authority to hold administrative hearings
for certain administrative hearings granted by the department of transportation and
the department of natural resources. For these hearings, DHA has the authority to
assign hearing examiners, supervise the hearing process and promulgate rules. This
bill expands these provisions to grant DHA the authority to also hold administrative
hearings for the department of health and family services (DHFS) and to hold certain
administrative hearings for the department of industry, labor and job development
(DILJD). Under the bill, DHA may conduct a hearing granted by DILJD, if the
hearing relates to the economic support and work programs administered by DILJD.
The bill grants the administrator of DHA the authority to set the fees, in
accordance with a federally approved allocation methodology, to be charged for the
services provided to DHFS and DILJD. DHFS and DILJD are required to pay to
DHA all costs of the services of a hearing examiner, including support services, for

these administrative hearings. The bill transfers from DHFS and DILJD to DOA
all assets and liabilities, pending matters, rules and orders, contracts, equipment
and records that relate to these administrative hearings. The bill also transfers
certain DHFS and DILJD employes to DOA; these employes are granted the same
rights and status at DOA that they possessed at DHFS and DILJD. The provisions
of the bill and the transfers take place on July 1, 1996, or on the day after publication.
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:
SB536, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
SB536, s. 2 3Section 2. 20.505 (4) (kp) of the statutes is created to read:
SB536,2,74 20.505 (4) (kp) Hearings and appeals fees. The amounts in the schedule for
5hearings and appeals services to the departments of health and family services and
6industry, labor and job development. All moneys received from the fees charged
7under s. 227.43 (3) (c) and (d) shall be credited to this appropriation account.
SB536, s. 3 8Section 3. 46.03 (42) of the statutes is created to read:
SB536,2,119 46.03 (42) Administrative hearings and appeals. Any hearing under s. 227.42
10granted by the department may be conducted before the division of hearings and
11appeals in the department of administration.
SB536, s. 4 12Section 4. 49.32 (12) of the statutes is created to read:
SB536,3,3
149.32 (12) Administrative hearings and appeals. Any hearing under s. 227.42
2granted by the department under this subchapter may be conducted before the
3division of hearings and appeals in the department of administration.
SB536, s. 5 4Section 5. 227.43 (title) of the statutes is amended to read:
SB536,3,6 5227.43 (title) Natural resources and transportation Division of
6hearings
and appeals.
SB536, s. 6 7Section 6. 227.43 (1) (bu) and (by) of the statutes are created to read:
SB536,3,118 227.43 (1) (bu) Assign a hearing examiner to preside over any hearing of a
9contested case that is required to be conducted by the department of health and
10family services and that is not conducted by the secretary of health and family
11services.
SB536,3,1512 (by) Assign a hearing examiner to preside over any hearing of a contested case
13that is required to be conducted by the department of industry, labor and job
14development under subch. III of ch. 49 and that is not conducted by the secretary of
15industry, labor and job development.
SB536, s. 7 16Section 7. 227.43 (2) of the statutes is renumbered 227.43 (2) (a).
SB536, s. 8 17Section 8. 227.43 (2) (c) and (d) of the statutes are created to read:
SB536,3,2218 227.43 (2) (c) The department of health and family services shall notify the
19division of hearings and appeals of every pending hearing to which the administrator
20of the division is required to assign a hearing examiner under sub. (1) (bu) after the
21department of health and family services is notified that a hearing on the matter is
22required.
SB536,4,223 (d) The department of industry, labor and job development shall notify the
24division of hearings and appeals of every pending hearing to which the administrator
25of the division is required to assign a hearing examiner under sub. (1) (by) after the

1department of industry, labor and job development is notified that a hearing on the
2matter is required.
SB536, s. 9 3Section 9. 227.43 (2m) of the statutes is renumbered 227.43 (2) (b).
SB536, s. 10 4Section 10. 227.43 (3) (c) and (d) of the statutes are created to read:
SB536,4,95 227.43 (3) (c) The administrator of the division of hearings and appeals may
6set the fees to be charged for any services rendered to the department of health and
7family services by a hearing examiner under this section in a manner consistent with
8a federally approved allocation methodology. The fees shall cover the total cost of the
9services.
SB536,4,1410 (d) The administrator of the division of hearings and appeals may set the fees
11to be charged for any services rendered to the department of industry, labor and job
12development by a hearing examiner under this section in a manner consistent with
13a federally approved allocation methodology. The fees shall cover the total cost of the
14services.
SB536, s. 11 15Section 11. 227.43 (4) of the statutes is renumbered 227.43 (4) (a) and
16amended to read:
SB536,4,1917 227.43 (4) (a) The department of natural resources shall pay all costs of the
18services of a hearing examiner assigned to the department under sub. (1) (b),
19according to the fee schedule fees set under sub. (3) (a).
SB536, s. 12 20Section 12. 227.43 (4) (c) and (d) of the statutes are created to read:
SB536,4,2321 227.43 (4) (c) The department of health and family services shall pay all costs
22of the services of a hearing examiner, including support services, assigned under sub.
23(1) (bu), according to the fees set under sub. (3) (c).
SB536,5,3
1(d) The department of industry, labor and job development shall pay all costs
2of the services of a hearing examiner, including support services, assigned under sub.
3(1) (by), according to the fees set under sub. (3) (d).
SB536, s. 13 4Section 13. 227.43 (5) of the statutes is renumbered 227.43 (4) (b) and
5amended to read:
SB536,5,96 227.43 (4) (b) The department of transportation shall pay all costs of the
7services of a hearing examiner assigned under sub. (1) (bg) or assigned to the
8department under sub. (1) (br), according to the fee schedule fees set under sub. (3)
9(b).
SB536, s. 14 10Section 14. Nonstatutory provisions.
SB536,5,12 11(1) Transfer of administrative hearings and appeals authority from
12department of health and family services to department of administration.
SB536,5,16 13(a) Assets and liabilities. On the effective date of this paragraph, the assets and
14liabilities of the department of health and family services associated with
15administrative hearings shall become the assets and liabilities of the department of
16administration.
SB536,5,17 17(b) Transfer of positions and employes, change in funding source.
SB536,5,22 18 1. The authorized FTE positions for the department of health and family
19services, funded from the appropriation under section 20.435 (8) (a) of the statutes
20and primarily related to hearings and appeals, are decreased by 5.4 GPR positions
21on the effective date of this subdivision, to reflect the transfer of hearings and
22appeals to the department of administration.
SB536,6,2 23 2. The authorized FTE positions for the department of health and family
24services, funded from the appropriation under section 20.435 (8) (n) of the statutes
25and primarily related to hearings and appeals, are decreased by 5.4 FED positions

1on the effective date of this subdivision, to reflect the transfer of hearings and
2appeals to the department of administration.
SB536,6,6 3 3.  The authorized FTE positions for the department of administration, funded
4from the appropriation under section 20.505 (4) (kp) of the statutes, are increased by
510.8 PR positions on the effective date of this subdivision, to reflect the transfer of
6hearings and appeals from the department of health and family services.
SB536,6,9 7 4.  All incumbent employes holding positions specified in subdivisions 1. and
8 2., as determined by the secretary of administration, are transferred on the effective
9date of this subdivision to the department of administration.
SB536,6,16 10(c) Employe status. Employes transferred under paragraph (b) 4. to the
11department of administration shall have the same rights and status under
12subchapter V of chapter 111 and chapter 230 of the statutes in the department of
13administration that they enjoyed in the department of health and family services.
14Notwithstanding section 230.28 (4) of the statutes, no employe with permanent
15status in class who is transferred under paragraph (b) is required to serve a
16probationary period.
SB536,6,20 17(d) Equipment and records. On the effective date of this paragraph, all
18furniture, equipment, supplies and records of the department of health and family
19services associated with administrative hearings shall be transferred to the
20department of administration.
SB536,6,25 21(e) Contracts. All contracts entered into by the department of health and family
22services associated with administrative hearings in effect on the effective date of this
23paragraph remain in effect and are transferred to the department of administration
24or the effective date of this paragraph. The department of administration shall carry
25out any such contractual obligations.
SB536,7,4
1(f) Rules and orders. All rules promulgated and orders issued by the
2department of health and family services associated with administrative hearings
3in effect on the effective date of this paragraph remain in effect until their specified
4expiration date or until modified or rescinded by the department of administration.
SB536,7,10 5(g) Pending matters. Any matter pending with the department of health and
6family services on the effective date of this paragraph associated with administrative
7hearings is transferred to the department of administration, and all materials
8submitted to or actions taken before the effective date of this paragraph with respect
9to the pending matter are considered as having been submitted to or taken by the
10department of administration.
SB536,7,12 11(2) Transfer of hearings and appeals authority from department of industry,
12labor and job development to department of administration.
SB536,7,16 13(a) Assets and liabilities. On the effective date of this paragraph, the assets and
14liabilities of the department of industry, labor and job development associated with
15administrative hearings under subchapter III of chapter 49 of the statutes shall
16become the assets and liabilities of the department of administration.
SB536,7,17 17(b) Transfer of positions and employes, change in funding source.
SB536,7,23 18 1. The authorized FTE positions for the department of industry, labor and job
19development, funded from the appropriation under section 20.445 (1) (kc) of the
20statutes and primarily related to hearings and appeals for economic support
21programs, are decreased by 10.0 PR positions on the effective date of this subdivision,
22to reflect the transfer of hearings and appeals for economic support programs to the
23department of administration.
SB536,8,3 24 2. The authorized FTE positions for the department of administration, funded
25from the appropriation under section 20.505 (4) (kp) of the statutes, are increased by

110.0 PR positions on the effective date of this subdivision, to reflect the transfer of
2hearings and appeals for economic support programs from the department of
3industry, labor and job development.
SB536,8,6 4 3. All incumbent employes holding positions specified in subdivision 1., as
5determined by the secretary of administration, are transferred on the effective date
6of this subdivision to the department of administration.
SB536,8,13 7(c) Employe status. Employes transferred under paragraph (b) 3. to the
8department of administration shall have the same rights and status under
9subchapter V of chapter 111 and chapter 230 of the statutes in the department of
10administration that they enjoyed in the department of industry, labor and job
11development. Notwithstanding section 230.28 (4) of the statutes, no employe with
12permanent status in class who is transferred under paragraph (b) is required to serve
13a probationary period.
SB536,8,17 14(d) Equipment and records. On the effective date of this paragraph, all
15furniture, equipment, supplies and records of the department of industry, labor and
16job development associated with administrative hearings under subchapter III of
17chapter 49 of the statutes shall be transferred to the department of administration.
SB536,8,23 18(e) Contracts. All contracts entered into by the department of industry, labor
19and job development associated with administrative hearings under subchapter III
20of chapter 49 of the statutes in effect on the effective date of this paragraph remain
21in effect and are transferred to the department of administration on the effective date
22of this paragraph. The department of administration shall carry out any such
23contractual obligations.
SB536,9,3 24(f) Rules and orders. All rules promulgated and orders issued by the
25department of industry, labor and job development associated with administrative

1hearings under subchapter III of chapter 49 of the statutes in effect on the effective
2date of this paragraph remain in effect until their specified expiration date or until
3modified or rescinded by the department of administration.
SB536,9,10 4(g) Pending matters. Any matter pending with the department of industry,
5labor and job development on the effective date of this paragraph associated with
6administrative hearings under subchapter III of chapter 49 of the statutes is
7transferred to the department of administration, and all materials submitted to or
8actions taken before the effective date of this paragraph with respect to the pending
9matter are considered as having been submitted to or taken by the department of
10administration.
SB536, s. 15 11Section 15. Appropriation changes; health and family services.
SB536,9,17 12(1) In the schedule under section 20.005 (3) of the statutes for the appropriation
13to the department of health and family services under section 20.435 (8) (a) of the
14statutes, as affected by the acts of 1995, the dollar amount is decreased by $439,600
15for fiscal year 1996-97 to reflect a decrease in the administrative hearings workload
16and the transfer of responsibility for administrative hearings to the department of
17administration.
SB536,9,22 18(2) In the schedule under section 20.005 (3) of the statutes for the appropriation
19to the department of health and family services under section 20.435 (1) (bm) of the
20statutes, as affected by the acts of 1995, the dollar amount is increased by $234,300
21for fiscal year 1996-97 to finance the cost of administrative hearing services provided
22to the department by the department of administration.
SB536,9,25 23(3) In the schedule under section 20.005 (3) of the statutes for the appropriation
24to the department of health and family services under section 20.435 (3) (a) of the
25statutes, as affected by the acts of 1995, the dollar amount is increased by $35,300

1for fiscal year 1996-97 to finance the cost of administrative hearing services provided
2to the department by the department of administration.
SB536, s. 16 3Section 16. Appropriation changes; industry, labor and job
development.
SB536,10,9 4(1)  Administrative personnel. In the schedule under section 20.005 (3) of the
5statutes for the appropriation to the department of industry, labor and job
6development under section 20.445 (1) (kc) of the statutes, as affected by the acts of
71995, the dollar amount is decreased by $522,300 for fiscal year 1996-97 to reflect
8the transfer of responsibility for administrative hearings to the department of
9administration.
SB536,10,15 10(2) Administrative hearings. In the schedule under section 20.005 (3) of the
11statutes for the appropriation to the department of industry, labor and job
12development under section 20.445 (3) (a) of the statutes, as affected by the acts of
131995, the dollar amount is increased by $170,000 for fiscal year 1996-97 to finance
14the cost of administrative hearing services provided to the department by the
15department of administration.
SB536, s. 17 16Section 17. Effective date.
SB536,10,18 17(1) Transfer of hearings and appeals. This act takes effect on July 1, 1996,
18or on the day after publication, whichever is later.
SB536,10,1919 (End)
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