2005 Wisconsin Act 74

74,51 Section 51. 71.34 (1) (g) of the statutes is amended to read:

71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3n), (3t), and (5b), and (5g) and passed through to shareholders.

74,52 Section 52. 71.45 (2) (a) 10. of the statutes is amended to read:

71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), and (5b), and (5g) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

74,53 Section 53. 71.47 (5g) of the statutes is created to read:

71.47 (5g) Health Insurance Risk-Sharing Plan assessments credit. (a) Definitions. In this subsection, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this subsection.

(b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to the amount of assessment under s. 149.13 that the claimant paid in the claimant's taxable year, multiplied by the percentage determined under par. (c) 1.

(c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year. The percentage shall be equal to $5,000,000 divided by the aggregate assessment under s. 149.13. The office of the commissioner of insurance shall provide to each claimant that participates in the cost of administering the plan the aggregate assessment at the time that it notifies the claimant of the claimant's assessment. The aggregate amount of the credit under this subsection and ss. 71.07 (5g), 71.28 (5g), and 76.655 for all claimants participating in the cost of administering the plan under ch. 149 shall not exceed $5,000,000 in each fiscal year.

2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

74,54 Section 54. 71.49 (1) (dm) of the statutes is created to read:

71.49 (1) (dm) Health Insurance Risk-Sharing Plan assessments credit under s. 71.47 (5g).

74,55 Section 55. 76.655 of the statutes is created to read:

76.655 Health Insurance Risk-Sharing Plan assessments credit. (1) Definitions. In this section, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this section.

(2) Filing claims. Subject to the limitations provided under this section, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the fees imposed under ss. 76.60, 76.63, 76.65, 76.66 or 76.67 an amount that is equal to the amount of assessment under s. 149.13 that the claimant paid in the claimant's taxable year, multiplied by the percentage determined under sub. (3).

(3) Limitations. (a) The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under sub. (2) for each claimant for each taxable year. The percentage shall be equal to $5,000,000 divided by the aggregate assessment under s. 149.13. The office of the commissioner of insurance shall provide to each claimant that participates in the cost of administering the plan the aggregate assessment at the time that it notifies the claimant of the claimant's assessment. The aggregate amount of the credit under this subsection and ss. 71.07 (5g), 71.28 (5g), and 71.47 (5g) for all claimants participating in the cost of administering the plan under ch. 149 shall not exceed $5,000,000 in each fiscal year.

(b) The amount of any credits that a claimant is awarded under this section for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the fees imposed under ss. 76.60, 76.63, 76.65, or 76.67 for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

(4) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 that are otherwise due, the unused balance may be carried forward and credited against those fees in the following 15 years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the assessment was paid and the year in which the carry-forward credit is claimed.

74,56 Section 56. 76.67 (2) of the statutes is amended to read:

76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credit credits under s. ss. 76.635 and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under s. ss. 76.635 and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

74,57 Section 57. 77.54 (9a) (a) of the statutes is amended to read:

77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational System Authority.

74,58 Section 58. 77.92 (4) of the statutes is amended to read:

77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), and (5b), and (5g); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

74,59 Section 59. 101.055 (2) (a) of the statutes is amended to read:

101.055 (2) (a) "Agency" means an office, department, independent agency, authority, institution, association, society, or other body in state government created or authorized to be created by the constitution or any law, and includes the legislature and the courts, but excludes the Health Insurance Risk-Sharing Plan Authority.

74,60 Section 60. 101.177 (1) (d) of the statutes is amended to read:

101.177 (1) (d) "State agency" means any office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law which , that is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, and the Wisconsin Health and Educational Facilities Authority, but excluding the Health Insurance Risk-Sharing Plan Authority.

74,61 Section 61. Chapter 149 (title) of the statutes is amended to read:

CHAPTER 149
Mandatory health insurance
risk-sharing plan Plans

74,62 Section 62. Subchapter I (title) of chapter 149 [precedes 149.10] of the statutes is created to read:

CHAPTER 149

subchapter I
General provisions

74,63 Section 63. 149.10 (intro.) of the statutes is amended to read:

149.10 Definitions. (intro.) In this chapter, unless the context requires otherwise:

74,64 Section 64. 149.10 (1) of the statutes is created to read:

149.10 (1) "Authority" means the Health Insurance Risk-Sharing Plan Authority.

74,65 Section 65. 149.10 (2) of the statutes is amended to read:

149.10 (2) "Board" means the board of governors established under s. 149.15 directors of the authority.

74,66 Section 66. 149.10 (2j) (a) 3. of the statutes is amended to read:

149.10 (2j) (a) 3. Part A or, part B, or part D of title XVIII of the federal Social Security Act.

74,67 Section 67. 149.10 (2m) of the statutes is repealed.

74,68 Section 68. 149.10 (2t) (c) of the statutes is amended to read:

149.10 (2t) (c) The individual does not have creditable coverage and is not eligible for coverage under a group health plan, part A or, part B , or part D of title XVIII of the federal Social Security Act or a state plan under title XIX of the federal Social Security Act or any successor program.

74,69 Section 69. 149.10 (3) of the statutes is amended to read:

149.10 (3) "Eligible person" means a resident of this state who qualifies under s. 149.12 whether or not the person is legally responsible for the payment of medical expenses incurred on the person's behalf.

74,70 Section 70. 149.10 (3e) of the statutes is amended to read:

149.10 (3e) "Fund" means the health insurance risk-sharing plan Health Insurance Risk-Sharing Plan fund under s. 149.11 (2).

74,71 Section 71. 149.10 (7) of the statutes is amended to read:

149.10 (7) "Medicare" means coverage under both part A and, part B, and part D of Title XVIII of the federal social security act, 42 USC 1395 et seq., as amended.

74,72 Section 72. 149.10 (8) of the statutes is amended to read:

149.10 (8) "Plan" means the health care insurance plan established and administered under subchapter II of this chapter.

74,73 Section 73. 149.10 (9) of the statutes is amended to read:

149.10 (9) "Resident" means a person who has been legally domiciled in this state for a period of at least 30 days 3 months or, with respect to an eligible individual, an individual who resides in this state. For purposes of this chapter, legal domicile is established by living in this state and obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin, or filing a Wisconsin income tax return. A child is legally domiciled in this state if the child lives in this state and if at least one of the child's parents or the child's guardian is legally domiciled in this state. A person with a developmental disability or another disability which that prevents the person from obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin, or filing a Wisconsin income tax return, is legally domiciled in this state by living in this state.

74,74 Section 74. 149.10 (10) of the statutes is repealed.

74,75 Section 75. 149.105 of the statutes is created to read:

149.105 Immunity. No cause of action of any nature may arise against, and no liability may be imposed upon, the authority, plan, or board; or any agent, employee, or director of any of them; or participating insurers; or the commissioner; or any of the commissioner's agents, employees, or representatives, for any act or omission by any of them in the performance of their powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.

74,76 Section 76. Subchapter II (title) of chapter 149 [precedes 149.11] of the statutes is created to read:

CHAPTER 149

subchapter II
Health insurance risk-sharing
plan provisions

74,77 Section 77. 149.11 of the statutes is repealed and recreated to read:

149.11 Administration of plan. (1) Authority. The authority shall be responsible for the operation of the plan and, subject to ss. 149.43 (2) and 149.47, may enter into contracts for the plan's administration.

(2) Fund. (a) The authority shall pay the operating and administrative expenses of the plan from the fund, which shall be outside the state treasury and which shall consist of all of the following:

3. Federal moneys paid to the authority under s. 20.145 (5) (m).

4. The moneys transferred under 2005 Wisconsin Act .... (this act), section 166 (1).

5. The earnings resulting from investments under par. (b).

6. Any other moneys received by the authority from time to time.

(b) The authority controls the assets of the fund and shall select regulated financial institutions in this state that receive deposits in which to establish and maintain accounts for assets needed on a current basis. If practicable, the accounts shall earn interest.

(c) Moneys in the fund may be expended only for the purposes specified in par. (a).

74,78 Section 78. 149.115 of the statutes is amended to read:

149.115 Rules relating to creditable coverage. The commissioner, in consultation with the department, shall promulgate rules that specify how creditable coverage is to be aggregated for purposes of s. 149.10 (2t) (a) and that determine the creditable coverage to which s. 149.10 (2t) (b) and (d) applies. The rules shall comply with section 2701 (c) of P.L. 104-191.

74,79 Section 79. 149.12 (1) (intro.) of the statutes is amended to read:

149.12 (1) (intro.) Except as provided in subs. (1m) and, (2), and (3), the board or plan administrator authority shall certify as eligible a person who is covered by medicare Medicare because he or she is disabled under 42 USC 423, a person who submits evidence that he or she has tested positive for the presence of HIV, antigen or nonantigenic products of HIV, or an antibody to HIV, a person who is an eligible individual, and any person who receives and submits any of the following based wholly or partially on medical underwriting considerations within 9 months prior to making application for coverage by the plan:

74,80 Section 80. 149.12 (1) (a) of the statutes is amended to read:

149.12 (1) (a) A notice of rejection of coverage from one 2 or more insurers.

74,81 Section 81. 149.12 (1m) of the statutes is amended to read:

149.12 (1m) The board or plan administrator authority may not certify a person as eligible under circumstances requiring notice under sub. (1) (a) to (d) if the required notices were issued by an insurance intermediary who is not acting as an administrator, as defined in s. 633.01.

74,82 Section 82. 149.12 (2) (f) of the statutes is renumbered 149.12 (2) (f) 1. and amended to read:

149.12 (2) (f) 1. No Except as provided in subd. 2., no person who is eligible for medical assistance is eligible for coverage under the plan.

74,83 Section 83. 149.12 (2) (f) 2. of the statutes is created to read:

149.12 (2) (f) 2. Subdivision 1. does not apply to a person who is otherwise eligible for coverage under the plan and who is eligible for only any of the following types of medical assistance:

a. Family planning services under s. 49.45 (24r).

b. Care and services for the treatment of an emergency medical condition under 42 USC 1396b (v), as provided in s. 49.45 (27).

c. Medical assistance under s. 49.46 (1) (a) 15.

d. Ambulatory prenatal care under s. 49.465.

e. Medicare premium, coinsurance, and deductible payments under s. 49.46 (2) (c) 2. or 3., 49.468 (1) (b) or (c), or 49.47 (6) (a) 6. b. or c.

f. Medicare premium payments under s. 49.46 (2) (cm), 49.468 (1m) or (2), or 49.47 (6) (a) 6m.

74,84 Section 84. 149.12 (2) (g) of the statutes is created to read: