Water quality
Under the Clean Water Fund Program, this state provides financial assistance
for projects for controlling water pollution, including sewage treatment plants.
Financial assistance is typically provided in the form of a loan at a subsidized
interest rate. Each biennial budget act establishes the present value of the subsidies
that may be provided under the Clean Water Fund Program during that biennium.
This bill sets the present value of the Clean Water Fund Program subsidies that may
be provided during the 2001-03 biennium at $90,000,000. The bill increases the
general obligation bonding authority for the Clean Water Fund Program by
$65,000,000 when the bill is enacted and an additional $20,000,000 on July 1, 2003.

The bill also increases the revenue bonding authority for the Clean Water Fund
Program by $92,000,000.
Generally, under the Clean Water Fund Program, funds are allocated to a
project as soon as the project is approved. However, if the amount of present value
subsidy, general obligation bonding authority, or revenue bonding authority
available for a biennium is 85% or less of the amount requested in a biennial finance
plan prepared by DOA and DNR, funding is allocated on the basis of a priority list
and funding may be provided in a fiscal year only to projects for which an application
is submitted by the June 30 preceding that fiscal year. This bill reduces the threshold
for allocating funds based on a priority list from 85% to 75%.
Under current law, a collection system or interceptor in an unsewered area is
eligible for subsidized financial assistance under the Clean Water Fund Program
only if at least two-thirds of the initial flow will be for wastewater originating from
residences in existence on October 17, 1972. This bill eliminates the reference to
October 17, 1972, and provides that a collection system or interceptor in an
unsewered area is eligible for subsidized financial assistance under the Clean Water
Fund Program only if at least two-thirds of the initial flow will be for wastewater
originating from residences in existence on the date that is ten years before the day
that DNR approves the facility plan for the project.
Under the Safe Drinking Water Loan Program, this state provides loans to local
governmental units for projects for the construction or modification of public water
systems. The loans are provided at subsidized interest rates. Each biennial budget
act establishes the present value of the subsidies that may be provided under the
Safe Drinking Water Loan Program during that fiscal biennium. This bill sets the
present value of the Safe Drinking Water Loan Program subsidies that may be
provided during the 2001-03 biennium at $10,900,000.
Current law requires permits from DNR for certain storm water discharges,
including discharges of storm water from a municipal storm sewer system serving
an incorporated area with a population of 100,000 or more.
This bill requires permits for additional municipal storm sewer systems, as now
required by federal law. Under the bill, the operator of a municipal storm sewer
system must obtain a permit if one of the following applies:
1. The system serves an urbanized area, as determined by the U.S. bureau of
the census.
2. The system serves an area with a population of 10,000 or more and a
population density of 1,000 or more per square mile and DNR requires the operator
to obtain a permit based on an evaluation of the system's impact on water quality.
3. DNR requires the operator to obtain a permit because the system contributes
pollutants to an interconnected system that is required to obtain a permit.
Under current law, DNR, in conjunction with DATCP and local governmental
units, administers a program to provide financial assistance for measures to reduce

water pollution from nonpoint (diffuse) sources. This bill increases the general
obligation bonding authority for the Nonpoint Source Program by $22,400,000.
Under the Nonpoint Source Program, a number of watersheds and lake areas
were selected for priority watershed and priority lake projects. Under current law,
no new priority watersheds or priority lakes may be selected. The bill prohibits DNR
from extending funding for a priority watershed or priority lake project beyond the
funding termination date that was in effect on January 1, 2001, or, if no funding
termination date was in effect on January 1, 2001, beyond the funding termination
date first established after January 1, 2001.
Under the Nonpoint Source Program, local governmental units annually apply
for cost-sharing grants from DNR for new nonpoint source projects. A project is
eligible for funding only if it is in a target area. An area may be a target area based
on several criteria, including the need for compliance with performance standards
established by DNR for nonpoint sources that are not agricultural. A project
qualifies for funding only if it cannot be conducted with funding provided by DATCP
under the Soil and Water Resource Management Program.
This bill adds that an area may be a target area under the Nonpoint Source
Program based on the need for compliance with performance standards established
by DNR for nonpoint sources that are agricultural. The bill also provides that a
project qualifies for funding if DNR, in consultation with DATCP, determines that
funding under the Soil and Water Resource Management Program is insufficient to
fund the project.
Under current law, DNR administers the Municipal Flood Control and
Riparian Restoration Program, under which DNR awards grants that pay a portion
of the costs of facilities and structures for the collection and transmission of storm
water and of the purchase of flowage and conservation easements on lands within
floodways. DNR also administers the Urban Nonpoint Source Water Pollution
Abatement and Storm Water Management Program, under which DNR awards
grants for projects that manage urban storm water and runoff from urban areas to
minimize flooding and protect groundwater. This bill increases the general
obligation bonding authority for the two programs by $11,000,000.
Voluntary environmental improvement
This bill creates the Green Tier Program, administered by DNR. The program
is designed to improve the environmental performance of public and private entities
through the provision of incentives. There are three tiers in the Green Tier Program.
A participant may participate in more than one tier.
A public or private entity that is subject to environmental laws (regulated
entity) may participate in tier I of the Green Tier Program. To participate, a
regulated entity must conduct an environmental performance evaluation or have an
environmental management system. An environmental performance evaluation is
a systematic review of the effects of a facility on the environment, including an

evaluation of compliance with one or more environmental laws. An environmental
management system is a set of procedures designed to evaluate the effects of a facility
on the environment and to achieve improvements in those effects.
To participate in tier I, the regulated entity must submit a report to DNR
describing the results of the environmental performance evaluation or describing
findings from the environmental management system. At the time of submitting the
report, more than two years must have elapsed since the regulated entity was
prosecuted or issued a citation for violating an environmental law. The report must
describe any violations of environmental laws revealed by the environmental
performance evaluation or environmental management system and the actions
taken or proposed to be taken to correct the violations. If the regulated entity
proposes to take more than 90 days to correct the violations, the regulated entity
must submit a proposed compliance schedule.
The bill generally prohibits this state from bringing an action to collect a
forfeiture (a civil monetary penalty) for a violation of an environmental law that is
disclosed by a regulated entity that satisfies the requirements for participation in
tier I of the Green Tier Program if the regulated entity corrects the violation within
the 90-day period or within the time provided in a compliance schedule that was
approved by DNR. The bill authorizes this state to begin an action to collect
forfeitures from a regulated entity that satisfies the requirements for participation
in tier I of the Green Tier Program at any time under several circumstances,
including cases in which a violation presents an imminent threat or may cause
serious harm to public health or the environment or in which DNR discovers the
violation before the regulated entity reports the violation.
An entity or a group of entities may participate in tier II of the Green Tier
Program. If a group applies, all of the requirements for participation apply to all of
the members of the group.
At the time of application for tier II, more than five years must have elapsed
since the applicant was convicted of a criminal violation of an environmental law that
resulted in substantial harm to public health or the environment or that presented
an imminent threat to public health or the environment; more than three years must
have elapsed since a civil judgment was entered against the applicant for a violation
of an environmental law that resulted in substantial harm to public health or the
environment; and more than two years must have elapsed since the applicant was
prosecuted or issued a citation for violating an environmental law.
To participate in tier II, an applicant must also have implemented or must
commit itself to implementing an environmental management system. The
applicant must specify objectives for improving its environmental performance or for
voluntarily restoring, enhancing, or preserving natural resources. The applicant
must also commit itself to conducting annual audits of its environmental
management system and to submitting reports to DNR on those audits.
The bill requires DNR to provide public recognition to an entity that
participates in tier II of the Green Tier Program. The bill also requires DNR to assign
one of its employees to serve as the contact with DNR for a participant in tier II for
all licenses and permits that the participant must obtain from DNR. After a

participant in tier II implements an environmental management system, DNR must
conduct inspections of the participant's facilities that are covered under green tier
at the lowest frequency that is permitted under DNR's rules.
An entity or a group of entities may participate in tier III of the Green Tier
Program. If a group applies, all of the requirements for participation apply to all of
the members of the group. A participant in tier III enters into a green tier contract
with DNR. The contract specifies the participant's commitments and the incentives
that will be provided to the participant.
At the time of application for tier III, more than ten years must have elapsed
since the applicant was convicted of a criminal violation of an environmental law that
resulted in substantial harm to public health or the environment or that presented
an imminent threat to public health or the environment; more than five years must
have elapsed since a civil judgment was entered against the applicant for a violation
of an environmental law that resulted in substantial harm to public health or the
environment; and more than two years must have elapsed since the applicant was
prosecuted or issued a citation for violating an environmental law.
To participate in tier III, an applicant must have implemented an
environmental management system. The applicant must commit itself to having an
outside auditor conduct annual audits of the environmental management system
and to submitting reports on those audits to DNR. The applicant must also commit
itself to annually conducting audits of its compliance with environmental laws and
to submitting the results of those audits to DNR.
Finally, to participate in tier III, an applicant must demonstrate that it has a
record of superior environmental performance and describe the measures that it
proposes to take to maintain and improve its superior environmental performance.
"Superior environmental performance" means that an entity minimizes the negative
effects of its pollutants on the environment or human health to an extent that is
greater than is required by law or that an entity voluntarily engages in restoring,
enhancing, or preserving natural resources.
If DNR determines that an applicant qualifies for participation in tier III, DNR
may enter into negotiations with the applicant about a green tier contract. DNR may
permit interested third parties to participate in the negotiations. If the parties reach
an agreement, they may enter into a green tier contract with a term of not more than
five years, subject to renewal for terms of not more than five years each. The bill
authorizes DNR to promulgate rules specifying incentives that may be provided to
participants in tier III.
The bill establishes a grant program under which the department of commerce
makes grants to nongovernmental organizations to help those organizations develop
the capacity to participate as interested third parties in the Green Tier Program and
makes grants to assist in the development of environmental management systems.
Other environment
Under current law, a registrant is required to pay an environmental impact fee
of $6 upon registering a new motor vehicle with DOT or upon applying for a new
certificate of title following a transfer of a vehicle. The environmental impact fees

are credited to the environmental fund and are earmarked for environmental
management activities. Currently, the law requiring a registrant to pay an
environmental impact fee expires on June 30, 2001. This bill extends that expiration
date to September 30, 2003.
Under current law, DNR may characterize a solid waste as a special waste
available for beneficial use in a public works project and must maintain a public list
of those special wastes. Currently, a contracting agency in a public works project may
require the use of those special wastes in a public works project. Current law grants
immunity from liability to any person who used those special wastes in a public
works project if that use occurred while performing work under the contract for the
public works project, the contract permitted or required the use of those special
wastes, and the use conformed to the contract provisions. Current law makes the
immunity inapplicable to reckless, wanton, or intentional misconduct or if death or
injury of an individual resulted from the use. Under current law, DNR may grant
a research waiver or an exemption from the requirements regarding the disposal or
recycling of high-volume industrial wastes and certain other solid wastes.
Under this bill, solid wastes that DNR has exempted from the disposal
requirement are considered special wastes and DNR may characterize them as
suitable for use in public works projects. The bill requires DNR to maintain a list of
special wastes that are suitable for use in specified types of public works projects.
Under the bill, the current provisions regarding liability apply to the use of those
listed special wastes in public works projects if the conditions established for their
use are met.
Current law generally requires a person to obtain a construction permit from
DNR before beginning construction of a stationary source of air pollution. This bill
authorizes DNR to issue a general construction permit, which may cover numerous
similar stationary sources of air pollution.
Under current law, the owner or operator of a stationary source of air pollution
who must obtain an air pollution control permit from DNR is required to pay an
annual fee to DNR. The amount of the fee is required to be based, among other
things, on actual emissions of pollutants from the source in the preceding five years,
using a five-year rolling average. Under this bill, the fee must be based on actual
emissions of pollutants from the source in the preceding year, rather than the
preceding five years.
This bill requires DNR to award grants to assist local governmental units to
establish regional recycling programs.
health and human services
Medical assistance
Under current federal and state law, medical assistance (MA) is a
jointly-funded, federal-state program to provide health care services to eligible

low-income individuals; federal medicaid funds (known as "federal financial
participation") are provided to match state funds expended for MA. Prescription
drug manufacturers enter into agreements with the federal government to provide
rebates for prescription drugs purchased under MA. Under current state law,
pharmacies and pharmacists that are certified providers of MA services are
reimbursed at a rate established by DHFS for providing certain prescription drugs
to MA recipients.
Under this bill, DHFS must request from the federal department of health and
human services a waiver of federal medicaid laws to permit DHFS to conduct a
project to expand MA eligibility solely for the purpose of purchasing prescription
drugs for persons who are at least 65, who have not had outpatient prescription drug
coverage from any source other than MA for 12 months, and whose annual household
incomes do not exceed 185% of the federal poverty line. If the waiver is granted, an
eligible person with a household income of up to 155% of the federal poverty line,
after paying a $25 annual enrollment fee and after paying specified deductible
amounts for prescription drugs calculated at the pharmacy discount rate, would be
entitled to purchase prescription drugs for copayment amounts specified in the bill.
A pharmacy or pharmacist who sells a drug at the reduced price would receive
reimbursement for the difference between the copayment and the pharmacy
discount rate amount from state general purpose revenues and federal medicaid
moneys. Persons with household incomes over 155% but less than 186% of the
federal poverty line, however, would only be eligible to purchase prescription drugs
at the pharmacy discount rate. Under the bill, this project may not be implemented
if the federal government creates a national prescription drug benefit program for
seniors that would provide similar benefits to a similar population. In addition,
DHFS must first secure approval from DOA and JCF.
The bill requires that DOA and DHFS work to develop, in conjunction with
other states and with associations, a multistate purchasing group to negotiate with
prescription drug manufacturers for MA prescription drug rebate agreements for
greater rebates for prescription drugs than those achievable under federal law.
Under the bill, DOA must also contract with a private entity to administer a discount
program for the purchase of prescription drugs that would be generally available to
anyone, regardless of age or income.
The bill requires that DHFS work with DOA to contract with a private entity
for the bulk purchase and mail order delivery of prescription drugs for MA recipients
who voluntarily participate in the discount program and who have chronic
conditions. Further, DHFS and DOA must promote private prescription drug
assistance plans that offer free and reduced-price drugs and prescription drug
discounts to members. DHFS must inform tribes, certain health centers, and other
entities that are eligible for a federal prescription drug discount program about the
program and provide technical assistance to the entities in applying for and
implementing benefits under the program.
Under current law, DWD administers the eligibility determination aspect of
MA; DHFS administers all other aspects of MA. Currently, DWD contracts with

county departments of social services or human services (county departments) to
determine the eligibility of individuals for MA. Under these contracts, DWD
reimburses the county departments for the reasonable costs of determining the
eligibility of individuals for each program. The amount that is reimbursed to each
county department is calculated using a formula based on each county's workload
and the amount of available state and federal moneys. DWD is also required to
investigate suspected fraudulent activity on the part of individuals who receive MA
benefits and to reduce errors in the payment of benefits.
This bill requires DWD and DHFS, jointly, to contract with county departments
to reimburse the county departments for the reasonable costs of determining the
eligibility of individuals for MA. Under the bill, only DWD makes the payments for
reimbursement to the county departments but the payments are funded, in part, by
an appropriation to DHFS. The bill requires DHFS to establish its own program to
investigate possible fraud on the part of MA recipients and to reduce errors in the
payments of MA or, in the alternative, to contract with DWD to conduct these
activities.
Under current federal medicaid law, nonfederal public funds transferred to the
state and expended for MA purposes may be considered as the state's share for the
purpose of claiming federal financial participation.
This bill creates an MA trust fund. The fund consists of 1) moneys received as
federal financial participation to match public moneys transferred to the state or
certified by DHFS as the state share of financial participation for MA payments
related to nursing homes; and 2) public moneys transferred to the state or certified
by DHFS as the state and federal share of financial participation for MA payments
related to nursing homes. The moneys in the MA trust fund are appropriated to
DHFS to meet the costs of MA and the administrative costs associated with
augmenting federal financial participation.
Under current law, in each fiscal year DHFS may distribute up to $38,600,000
received as federal financial participation to supplement MA payments to reduce the
operating deficits of county, city, village, or town nursing homes. DHFS must also
distribute for this purpose additional moneys received as federal financial
participation that were not anticipated before enactment of the biennial budget act
or before enactment of other legislation that affects the appropriation of such federal
moneys.
As of July 1, 2000, this bill retroactively eliminates the requirement that DHFS
distribute for this purpose additional, unanticipated moneys received as federal
financial participation and increases, to up to $40,100,000, the amount of federal
financial participation that may be distributed.
Under current law, DHFS administers the Badger Care Health Care Program
(BadgerCare) under a waiver from the federal department of health and human
services. BadgerCare provides health care coverage to certain low-income families
and to certain low-income children who do not reside with a parent. As a condition

of eligibility for BadgerCare, a family or child must be without access to
employer-subsidized health care coverage for a period specified by DHFS by rule.
This bill requires DHFS to request a waiver from the federal department to
extend the period a family or child is required to be without access to
employer-subsidized health care coverage to be eligible for BadgerCare to six
months except under certain circumstances. The bill also requires DHFS to request
a second waiver to permit DHFS, prior to enrolling a family or child in BadgerCare,
to verify whether the family or child has had access to employer-subsidized health
care.
Under current law, DHFS certifies persons that meet certain criteria as MA
providers and pays for services and items that MA recipients receive from the
providers. Currently, DHFS is authorized or required to enforce numerous
sanctions, including decertification or suspension from MA, against providers who
fail to comply with MA requirements or to whom MA payments have been improperly
or erroneously made or overpayments have been made. To implement these
sanctions, DHFS must provide written notice, a fair hearing, and a written decision.
Currently, fraud in applications for, rights to, and conversion of MA benefits or
payments is prohibited. These prohibitions are punishable by fines and
imprisonment. Also under current law, if a provider who is liable for repayment of
improper or erroneous MA payments or overpayments sells or otherwise transfers
ownership of his or her business, the seller and transferee are each liable for the
repayment. The transferee must contact DHFS and ascertain whether the seller has
an outstanding amount owing. DHFS may bring an action to compel payment
against either the seller or transferee if a sale or other transfer occurs, and the
amount has not been repaid.
This bill authorizes DHFS, after providing reasonable notice and the
opportunity for a hearing, to charge a fee to an MA provider that has repeatedly been
subject to recoveries of MA payments because of the provider's failure to follow
billing procedures or to follow other MA requirements. The fee must be used to
defray the costs of audits and investigations by DHFS of federal medicaid or MA
violations and to verify that services have been provided and the appropriateness
and accuracy of reimbursement claims. The fee may not exceed $1,000 or 200% of
the amount of any recovery, whichever is greater. The bill permits DHFS to recover
any part of such a fee that is not timely paid by offsetting the fee against any MA
payment owed to the provider. Failure to timely pay a fee is grounds for MA
decertification.
The bill authorizes DHFS to require certain MA providers, as a condition of
certification, to file with DHFS a surety bond, payable to DHFS, that would
reasonably pay the amount of a recovery and DHFS's costs to pursue recovery of
overpayments or to investigate and pursue allegations of false claims or statements.
The bill also authorizes DHFS to limit the number of providers of particular services
that may receive MA certification or limit the amount of resources, including
employees and equipment, that a certified provider may use to provide MA services
and items.

The bill changes numerous provisions relating to procedures for the recovery
by DHFS of MA overpayments or improper or erroneous payments, including all of
the following:
1. Hearing requirements are eliminated and, instead, a provider has the
opportunity to present information and argument to DHFS staff.
2. A deadline for the payment of recoveries is established, and payment of
interest on delinquent amounts is required.
The bill eliminates DHFS's general authority to suspend a provider, but instead
authorizes DHFS, if certain criteria are met, to suspend certification for a provider
pending a hearing on whether the provider must be decertified for violation of federal
or state laws.
The bill requires providers to allow DHFS access to provider records and
specifies that a provider's failure to provide access constitutes grounds for
decertification.
With respect to liability for repayment of improper or erroneous payments or
overpayments of a provider who sells or transfers ownership of his or her business,
the bill eliminates provisions that confer liability on both the transferor and the
transferee. Under the bill, before a person may take over the operation of an MA
provider, the person must obtain MA certification with respect to the provider's
operation, regardless of whether the person is currently certified. Also, before a
person may take over the operation of an MA provider that is liable for repayment
of improper or erroneous MA payments or overpayments, full repayment must be
made. Upon request, DHFS must notify the person or provider as to whether the
provider is liable. If, notwithstanding the prohibition, the person takes over the
provider's operation, and the outstanding repayment is not made, DHFS may
withhold certification from the person and may proceed against the provider or
person. If the repayment is not paid in full within 30 days after DHFS provides notice
to the certified provider, DHFS may bring an action to compel payment, to decertify
a provider, or to do both.
Under current law, DHFS receives federal funding to conduct a breast and
cervical cancer early detection program. This program provides individuals with
breast and cervical cancer screening, referrals, education, and outreach. This bill
expands MA to provide MA to women who are under the age of 65, who require
treatment for breast or cervical cancer, who have been screened for breast or cervical
cancer under the breast and cervical cancer early detection program, and who are not
otherwise eligible for MA or any other health care coverage.
Currently, the long-term support Community Options Program (COP)
provides functionality assessments of, and home and community-based care to,
among others, elderly and disabled persons as an alternative to institutionalized
care. One part of COP (often referred to as COP-Regular) is funded by state general
purpose revenues and the other part (often referred to as COP-Waiver) is funded
jointly by federal medicaid and state MA moneys under a waiver of federal medicaid
laws. Also under MA under a waiver of federal medicaid laws, a Community

Integration Program (often referred to as CIP II) provides home and
community-based services and continuity of care for persons relocated from
institutions, other than the state centers for the developmentally disabled, and for
persons who meet requirements for MA reimbursement in nursing homes.
Currently, funds under COP-Waiver and CIP II may not be used to provide
services in a C-BRF that has more than four beds unless the C-BRF has five to eight
beds and DHFS approves the C-BRF. This bill changes restrictions on the use of
COP-Waiver and CIP II funds for providing services in a C-BRF to permit use of the
funds in a C-BRF that has five to 20 beds if DHFS approves.
Currently, DHFS operates three Community Integration Programs (CIPs) as
part of MA. These programs provide home and community-based services to
individuals who are relocated from institutions such as state centers for the
developmentally disabled or nursing homes, or who meet the criteria for
reimbursement under MA for nursing home care. DHFS also administers the Family
Support Program, which provides assistance, including home and community-based
services, to families with a disabled child, and a program that provides early
intervention services to certain eligible children. These two programs are not part
of MA and are funded with GPR.
This bill requires DHFS to request a waiver of federal medicaid laws from the
federal department of health and human services to provide to disabled individuals
who are under 24 years of age, under one program, with unified administration and
service delivery, the services offered under COP-Waiver, CIPs, the Family Support
Program, and the Early Intervention Program. If DHFS receives the waiver, DHFS
must seek enactment of legislation to implement the waiver within the limits of
available federal, state, and county funds.
Under current law, an individual who meets the requirements under one of the
following categories is eligible for MA:
1. AFDC-MA. This category includes individuals who meet the income, asset,
and non-financial requirements for the federal Aid to Families with Dependent
Children (AFDC) Program that were in effect on July 16, 1996. Generally,
individuals who meet the AFDC requirements are certain children under 19 years
of age, their caretaker relatives, and pregnant women in the eighth or ninth month
of pregnancy.
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