AB133-SSA1-SA1, s. 2335ye 4Section 2335ye. 196.795 (5) (i) 1. of the statutes is amended to read:
AB133-SSA1-SA1,360,85 196.795 (5) (i) 1. Shall consider the public utility affiliate as a wholly
6independent corporation and shall impute a capital structure to the public utility
7affiliate and establish a cost of capital for the public utility affiliate on a stand-alone
8basis
;
AB133-SSA1-SA1, s. 2335yf 9Section 2335yf. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered
10196.795 (6m) (b) 1., 2., 3. and 4.
AB133-SSA1-SA1, s. 2335yg 11Section 2335yg. 196.795 (5) (pm) 1. (intro.) of the statutes is repealed.
AB133-SSA1-SA1, s. 2335yh 12Section 2335yh. 196.795 (5) (pm) 1. a. of the statutes is renumbered 196.795
13(6m) (a) 3.
AB133-SSA1-SA1, s. 2335yi 14Section 2335yi. 196.795 (5) (pm) 1. b. of the statutes is renumbered 196.795
15(6m) (a) 5.
AB133-SSA1-SA1, s. 2335yj 16Section 2335yj. 196.795 (5) (pm) 1. c. of the statutes is renumbered 196.795
17(6m) (a) 6.
AB133-SSA1-SA1, s. 2335yk 18Section 2335yk. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795
19(6m) (c) and amended to read:
AB133-SSA1-SA1,360,2520 196.795 (6m) (c) Wholesale merchant plants. The assets of a wholesale
21merchant plant shall not be included in the sum of the assets of a public utility
22affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility
23affiliate's total assets under par. (p) (b) 2. a. if the requirements specified in s. 196.491
24(3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the
25exemption under s. 196.491 (3m) (e).
AB133-SSA1-SA1, s. 2335yL
1Section 2335yL. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795
2(6m) (d) and amended to read:
AB133-SSA1-SA1,361,63 196.795 (6m) (d) Foreign affiliates. The assets of a foreign affiliate shall be
4included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a.,
5b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p)
6(b) 2. a.
AB133-SSA1-SA1, s. 2335ym 7Section 2335ym. 196.795 (6m) (title) of the statutes is created to read:
AB133-SSA1-SA1,361,88 196.795 (6m) (title) Asset cap.
AB133-SSA1-SA1, s. 2335yn 9Section 2335yn. 196.795 (6m) (a) (intro.) of the statutes is created to read:
AB133-SSA1-SA1,361,1010 196.795 (6m) (a) Definitions. (intro.) In this subsection:
AB133-SSA1-SA1, s. 2335yo 11Section 2335yo. 196.795 (6m) (a) 1. of the statutes is created to read:
AB133-SSA1-SA1,361,1412 196.795 (6m) (a) 1. "Contributor public utility affiliate" means a public utility
13affiliate that has contributed its transmission facilities to the transmission company
14under s. 196.485 (5) (b).
AB133-SSA1-SA1, s. 2335yp 15Section 2335yp. 196.795 (6m) (a) 2. of the statutes is created to read:
AB133-SSA1-SA1,361,1716 196.795 (6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that
17is used for any of the following:
AB133-SSA1-SA1,361,1918 a. Producing, generating, transmitting, delivering, selling or furnishing gas,
19oil, electricity or steam energy.
AB133-SSA1-SA1,361,2120 b. Providing an energy management, conservation or efficiency product or
21service or a demand-side management product or service.
AB133-SSA1-SA1,361,2222 c. Providing an energy customer service, including metering or billing.
AB133-SSA1-SA1,361,2323 d. Recovering or producing energy from waste materials.
AB133-SSA1-SA1,361,2424 e. Processing waste materials.
AB133-SSA1-SA1,362,3
1f. Manufacturing, distributing or selling products for filtration, pumping water
2or other fluids, processing or heating water, handling fluids or other related
3activities.
AB133-SSA1-SA1,362,44 g. Providing a telecommunications service, as defined in s. 196.01 (9m).
AB133-SSA1-SA1, s. 2335yq 5Section 2335yq. 196.795 (6m) (a) 4. of the statutes is created to read:
AB133-SSA1-SA1,362,86 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as
7electric generation assets on the books of account of a public utility, as determined
8by the commission.
AB133-SSA1-SA1, s. 2335yr 9Section 2335yr. 196.795 (6m) (b) (title) of the statutes is created to read:
AB133-SSA1-SA1,362,1010 196.795 (6m) (b) In general.
AB133-SSA1-SA1, s. 2335ys 11Section 2335ys. 196.795 (6m) (e) of the statutes is created to read:
AB133-SSA1-SA1,362,1712 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of
13a nonutility affiliate in a holding company system that includes each of the
14contributor public utility affiliates in the holding company system shall not be
15included in the sum of the assets of the public utility affiliates under par. (b) 1. a.,
16b. or c. and shall not be included in the nonutility affiliate's total assets under par.
17(b) 2. a.
AB133-SSA1-SA1,362,1918 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be
19considered eligible assets if each of the following is satisfied:
AB133-SSA1-SA1,362,2220 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of
21directors specifies that the business of the nonutility affiliate is limited to activities
22involving eligible assets.
AB133-SSA1-SA1,362,2323 b. Substantially all of the assets of the nonutility affiliate are eligible assets.
AB133-SSA1-SA1,363,424 3. The net book value of transmission facility assets that a contributor public
25utility affiliate has contributed to a transmission company under s. 196.485 (5) (b)

1shall be included in the sum of the assets of the public utility affiliate under par. (b)
21. a., b. and c. In determining net book value under this subdivision, accumulated
3depreciation shall be calculated as if the contributor public utility affiliate had not
4contributed the assets.
AB133-SSA1-SA1,363,115 4. The net book value of generation assets that a contributor public utility
6affiliate has transferred to a person that is not affiliated with the public utility
7affiliate pursuant to the order of the commission, a court or a federal regulatory
8agency shall be included in the sum of the assets of the public utility affiliate under
9par. (b) 1. a., b. and c. In determining net book value under this subdivision,
10accumulated depreciation shall be calculated as if the contributor public utility
11affiliate had not transferred the assets.
AB133-SSA1-SA1, s. 2335yt 12Section 2335yt. 196.795 (11) (b) of the statutes is amended to read:
AB133-SSA1-SA1,363,2313 196.795 (11) (b) This section shall be deemed to legalize and confirm the
14formation, prior to November 28, 1985, of any holding company, which is not itself
15a public utility, and shall be deemed to legalize and confirm the operations and
16issuances of securities of the holding company, except that nothing in this section
17shall be deemed to prevent the commission from imposing reasonable terms,
18limitations or conditions on any holding company which are consistent with the
19requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and
20necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate
21to future investments by the holding company unless the holding company owns,
22operates, manages or controls a telecommunications utility and does not also own,
23operate, manage or control a public utility which is not a telecommunications utility.
AB133-SSA1-SA1, s. 2335yu 24Section 2335yu. 196.795 (11) (c) of the statutes is created to read:
AB133-SSA1-SA1,364,9
1196.795 (11) (c) The commission may not impose upon a holding company the
2formation of which is considered to be legalized and confirmed under par. (b) any
3term, limitation or condition under par. (b) that establishes the sum of the holding
4company's nonutility affiliate assets at less than 25% of the sum of the holding
5company's utility affiliate assets. For purposes of this paragraph, any term,
6limitation or condition on nonutility affiliate assets shall not apply to the ownership,
7operation, management or control of any eligible asset, as defined under sub. (6m)
8(a) 2., or an asset that is used for manufacturing, distributing or selling swimming
9pools or spas.
AB133-SSA1-SA1, s. 2335z 10Section 2335z. 196.807 of the statutes is created to read:
AB133-SSA1-SA1,364,12 11196.807 Energy affiliate and utility employes. (1) Definitions. In this
12section:
AB133-SSA1-SA1,364,1413 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system
14or an electric utility, as defined in s. 196.491 (1) (d).
AB133-SSA1-SA1,364,1715 (b) "Energy unit" means a unit in this state that is engaged in activities related
16to the production, generation, transmission or distribution of electricity, gas or steam
17or the recovery of energy from waste materials.
AB133-SSA1-SA1,364,1818 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).
AB133-SSA1-SA1,364,1919 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).
AB133-SSA1-SA1,364,2020 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).
AB133-SSA1-SA1,364,2221 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer
22ownership or control of the energy unit.
AB133-SSA1-SA1,364,2423 (g) "Unit" means a division, department or other operational business unit of
24an affiliate or utility.
AB133-SSA1-SA1,365,5
1(2) Offer of employment. (a) Except as provided in par. (b), a person may not
2sell an energy unit unless the terms of the transfer require the person to which the
3energy unit is transferred to offer employment to the nonsupervisory employes who
4are employed with the energy unit immediately prior to the transfer and who are
5necessary for the operation and maintenance of the energy unit.
AB133-SSA1-SA1,365,96 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate
7in the same holding company system unless the terms of the transfer require the
8nonutility affiliate to offer employment to all of the nonsupervisory employes who are
9employed with the energy unit immediately prior to the transfer.
AB133-SSA1-SA1,365,12 10(3) Employment terms and conditions. (a) Except as provided in par. (b), the
11employment that is offered under sub. (2) shall satisfy each of the following during
12the 30-month period beginning immediately after the transfer:
AB133-SSA1-SA1,365,1413 1. Wage rates shall be no less than the wage rates in effect immediately prior
14to the transfer.
AB133-SSA1-SA1,365,1615 2. Fringe benefits shall be substantially equivalent to the fringe benefits in
16effect immediately prior to the transfer.
AB133-SSA1-SA1,365,1917 3. Terms and conditions of employment, other than wage rates and fringe
18benefits, shall be substantially equivalent to the terms and conditions in effect
19immediately prior to the transfer.
AB133-SSA1-SA1,365,2120 (b) A collective bargaining agreement may modify or waive a requirement
21specified in par. (a).
AB133-SSA1-SA1,365,24 22(4) Commission approval. Except for a cooperative association, as defined in
23s. 196.491 (1) (bm), no person may sell an energy unit unless the commission
24determines that the person has satisfied subs. (2) and (3).".
AB133-SSA1-SA1,366,1
1974. Page 1186, line 9: after that line insert:
AB133-SSA1-SA1,366,3 2" Section 2337m. Subchapter II of chapter 196 [precedes 196.991] of the
3statutes is created to read:
AB133-SSA1-SA1,366,44 Chapter 196
AB133-SSA1-SA1,366,65 Subchapter II
6 Hospital rate price caps
AB133-SSA1-SA1,366,7 7196.991 Definitions. In this subchapter:
AB133-SSA1-SA1,366,8 8(1) "Commission" means the public service commission.
AB133-SSA1-SA1,366,9 9(2) "Consumer price index" has the meaning given in s. 16.004 (8) (e) 1.
AB133-SSA1-SA1,366,11 10(3) "Hospital" has the meaning given in s. 50.33 (2), except that "hospital" does
11not include a center for the developmentally disabled, as defined in s. 51.01 (3).
AB133-SSA1-SA1,366,14 12(3m) "Price cap" means the maximum rate that may be charged for a service
13and includes any allowable increases in the maximum rate that are based on
14increases in the consumer price index.
AB133-SSA1-SA1,366,17 15(4) "Rates" means individual charges of a hospital for the services that it
16provides or, if authorized under s. 196.993, the aggregate charges based on case mix
17measurements.
AB133-SSA1-SA1,366,20 18196.992 Hospital rate price caps. (1) The commission shall promulgate
19rules that establish price caps for hospital rates. The commission shall consider each
20of the following in promulgating rules under this subsection:
AB133-SSA1-SA1,366,2221 (a) The need to reduce the rate of hospital cost increases while preserving the
22quality of health care in all parts of the state.
AB133-SSA1-SA1,366,2423 (b) A variety of cost-related trend factors based on nationally or regionally
24recognized economic models.
AB133-SSA1-SA1,367,1
1(c) The past budget and rate experiences of hospitals in this state.
AB133-SSA1-SA1,367,8 2(2) Rules promulgated under sub. (1) shall include requirements and
3procedures for hospitals to provide the commission with information that the
4commission determines is necessary to carry out its duties under this subchapter and
5for hospitals to notify the commission and patients of rates charged and any proposed
6increases or decreases in rates. The rules shall also include requirements and
7procedures for the commission to regularly review and, if necessary, revise the price
8caps established in the rules promulgated under sub. (1).
AB133-SSA1-SA1,367,10 9(3) Rules promulgated under sub. (1) may include requirements and
10procedures for each of the following:
AB133-SSA1-SA1,367,1311 (a) Exceptions from price caps for rural or teaching hospitals if the commission
12determines that such hospitals are subject to special circumstances that warrant an
13exception.
AB133-SSA1-SA1,367,1614 (b) A uniform system for hospitals to make reports to the commission if the
15commission determines that such a system is necessary for the commission to carry
16out its duties under this subchapter.
AB133-SSA1-SA1,367,23 17196.993 Case mix measurements. The commission may promulgate rules
18establishing a system that defines rates as aggregate charges based on case mix
19measurements if the commission submits its proposed system to the joint committee
20on finance under s. 13.10, receives that committee's approval and holds a public
21hearing prior to promulgating its rules. Such a system may not take effect prior to
22January 1, 2001, shall be consistent with the standard under s. 196.992 (1) (a) and
23shall ensure quality of care at a reasonable cost to patients.
AB133-SSA1-SA1,367,25 24196.994 Commission prohibitions. In carrying out its duties under this
25subchapter, the commission may not do any of the following:
AB133-SSA1-SA1,368,2
1(a) Interfere directly in the personal or decision-making relationships between
2a patient and the patient's physician.
AB133-SSA1-SA1,368,63 (b) Restrict the freedom of patients to receive care at a hospital consistent with
4their religious preferences or request a hospital that is affiliated with a religious
5group to act in a manner contrary to the mission and philosophy of the religious
6group.
AB133-SSA1-SA1,368,97 (c) Restrict directly the freedom of hospitals to exercise management decisions
8in complying with the price caps established in rules promulgated under s. 196.992
9(1).
AB133-SSA1-SA1,368,1110 (d) Require the submission of unrelated financial data from religious groups
11affiliated with a hospital.
AB133-SSA1-SA1,368,17 12196.995 Enforcement. (1) The commission may seek a judicial remedy to
13enforce compliance with any requirement of this subchapter or with any rule or order
14of the commission under this subchapter if it first notifies the hospital and provides
15the hospital a reasonable time to correct a violation. The commission shall commence
16any action under this subsection in the circuit court for the county in which the
17hospital is located.
AB133-SSA1-SA1,368,21 18(2) Any court that finds an intentional failure to comply with a price cap
19established in rules promulgated under s. 196.992 (1) may impose a forfeiture of up
20to $5,000. Each week that a hospital continues its intentional failure to comply with
21the price cap constitutes a separate violation.
AB133-SSA1-SA1,368,24 22(3) Any court with jurisdiction over an action brought under this section may
23adopt remedies that it finds necessary to enforce compliance. Remedies under this
24section apply notwithstanding the existence or pursuit of any other remedy.
AB133-SSA1-SA1,368,25 25196.996 Assessments. (1) In this section:
AB133-SSA1-SA1,369,3
1(a) "Commercial insurance" includes a group or individual disability insurance
2policy, as defined in s. 632.895 (1) (a), an employer's self-insured health care plan
3and worker's compensation.
AB133-SSA1-SA1,369,64 (b) "Deduction" means the portion of a charge that was incurred by a patient
5but was not received from 3rd-party payers or governmental or private payment.
6"Deduction" includes charity care but does not include bad debt.
AB133-SSA1-SA1,369,87 (c) "Expense" means the cost of operation, including bad debt, that is charged
8to a hospital during the hospital's fiscal year.
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