The bill also provides that if a school board adopts a proposed budget in which
the school district's general fund balance at the end of the fiscal year divided by the
school district's general fund expenditures in that fiscal year will exceed an amount
equal to 90 percent of the statewide average school district general fund ratio of
balance to expenditures in the previous fiscal year, the school board must approve
the excess by a separate vote.

Under current law, the state reimburses school boards and private schools 10
cents for each breakfast served under the School Breakfast Program. This bill raises
the reimbursement rate to 15 cents.
This bill increases the reimbursement rates for school district pupil
transportation and changes the funding source for school transportation aid from the
general fund to the transportation fund.
Under current law, a school board, board of control of a cooperative educational
service agency, county children with disabilities education board, or an independent
charter school established by the University of Wisconsin-Milwaukee, the
University of Wisconsin-Parkside, Milwaukee Area Technical College, or the city of
Milwaukee is eligible to receive state aid for certain special education costs, such as
salaries for special education personnel and transporting children with disabilities.
Other costs, such as providing nursing care or assistive technology for children with
disabilities, are not reimbursable under state or federal law. Beginning in the
2006-07 school year, this bill provides state aid for these costs equal to 90 percent
of the amount by which these costs exceeded $30,000 per child in the previous school
year.
Current law authorizes the employment of teachers, school social workers,
school psychologists, and coordinators of special education, who are licensed by DPI,
for a special education program. The salaries of these employees are eligible for state
reimbursement through special education aid.
Beginning in the 2006-07 fiscal year, this bill allows the employment of licensed
school counselors for special education programs and provides that the cost of their
salaries is eligible for reimbursement through special education aid.
This bill directs DPI to award grants to persons who employ individuals
licensed by DPI as initial educators in positions that require a DPI teaching license.
The amount of the grant is equal to the amount that the employer is spending to
provide a mentor for the initial educator, but not more than $375 for each initial
educator so employed. The employer must use the funds to provide a mentor for each
initial educator.
Current law directs DPI to award a grant to any person who is certified by the
National Board for Professional Teaching Standards, licensed by DPI as a teacher
or employed as a teacher in a private school, and employed as a teacher in this state.
This bill provides that a teacher who is licensed by DPI as a master educator is also
eligible for the grant.
This bill creates a grant program, funded with Indian gaming revenue, under
which a person may apply to DPI for a grant of up to $30,000 to: (1) impart to pupils
an appreciation of different value systems and cultures; (2) promote pupils'
understanding of human relations, particularly with regard to American Indians; or
(3) assist pupils, schools, and communities in appreciating racial and cultural
diversity. The bill also appropriates Indian gaming revenue for the American Indian
Language and Culture Eduction Program, which DPI administers.
This bill provides state aid to nonsectarian private or tribal schools in which at
least 75 percent of the pupils enrolled are American Indian. The amount provided

is $200 for each pupil who completes the fall semester in the school's American
Indian Language and Culture Eduction Program.
This bill requires DPI to award a grant to Beloit College to educate children and
adults in southern Wisconsin about Native American cultures.
This bill directs DPI to award grants to school districts to partially reimburse
them for the costs incurred in offering advanced placement courses in high schools
that are not currently offering them. A grant may not exceed $300 per pupil enrolled
in advanced placement courses.
This bill directs DPI to award grants to cooperative educational service
agencies and the Milwaukee Public Schools for the purpose of providing advanced
curriculum and assessments for gifted and talented middle school pupils.
Current law directs DWD annually to allocate $100,000 from federal
Temporary Assistance for Needy Families (TANF) moneys to the Wausau school
district for English training for three-, four-, and five-year-old Southeast Asian
children. This bill shifts funding for this purpose to DPI and to general purpose
revenue. The bill also eliminates the Head Start supplement from TANF funds.
This bill directs DPI to award grants to nonprofit organizations in the 2005-06
fiscal year to support programs that train community-based adult literacy staff and
to establish new volunteer-based programs in areas of the state that need adult
literacy services. A grant may not exceed $25,000.
This bill authorizes DPI to assist in the establishment of, and to participate in,
a consortium of state education agencies organized to obtain funds for the purchase
of an English language proficiency assessment system.
Higher education
Generally, current law allows a UW System student who has been a bona fide
Wisconsin resident for the 12 months preceding the beginning of a semester or
session for which the student registers to pay resident, as opposed to nonresident,
tuition.
This bill allows an alien who is not a legal permanent resident of the United
States to pay resident, as opposed to nonresident, tuition if he or she: 1) graduated
from a Wisconsin high school or received a high school graduation equivalency from
Wisconsin; 2) was continuously present in Wisconsin for at least three years
following the first day of attending a Wisconsin high school; and 3) enrolls in a UW
System institution and provides the institution with an affidavit stating that he or
she has filed or will file an application for permanent residency with U.S. Citizenship
and Immigration Services as soon as he or she is eligible to do so. The bill also
provides that such persons are to be considered residents of this state for purposes
of admission to and payment of fees at a technical college.
Current law grants certain veterans an exemption from nonresident tuition at
the UW System even if they were not Wisconsin residents at the time of entry or
reentry into active duty. This bill grants the exemption only to a veteran who was
a Wisconsin resident at the time of entry or reentry into active duty.

Current law authorizes the Board of Regents of the UW System to award
nonresident tuition exemptions to different categories of students, but the number
of remissions for each category is limited. This bill eliminates these limits.
Currently DHFS and the Department of Commerce, in conjunction with the
UW System's State Laboratory of Hygiene (lab), conduct federal Occupational Safety
and Health Administration (OSHA) testing, pursuant to a contract with OSHA. This
bill transfers the entire responsibility for this testing, along with incumbent
employees and positions, to the lab.
This bill requires the Board of Regents of the UW System to file a plan with DOA
to eliminate 200 UW System administrative positions. Unless the secretary of
administration approves the plan, the board loses the authority to create or abolish
faculty and academic staff positions from general program operations funding
during the 2006-07 fiscal year.
This bill requires the Board of Regents of the UW System to submit to the
secretary of administration by August 1, 2006, a report that describes by position
classification and campus the faculty and instructional staff positions that were
created from July 1, 2004, to July 1, 2006, to promote access to the UW System.
This bill directs the Board of Regents of the UW System to allocate certain
amounts of money from the UW System general program operations appropriation
for implementing the recommendations of the UW System Committee on
Baccalaureate Expansion and for the UW-Rock County Engineering Initiative.
This bill requires DOA annually to lapse from three UW System appropriations
the amount of money equal to the amount spent from a DOJ appropriation for legal
advice regarding UW's public broadcasting.
Current law authorizes a technical college district board to charge an
additional fee for a short-term, professional development, vocational-adult seminar
or workshop offered to individuals who are employed in a related field. The
additional fee may not exceed an amount equal to the full cost of the seminar or
workshop less the normal program fee. This bill eliminates this restriction on the
amount of the additional fee but provides that the seminar or workshop may not
consist of more than 24 hours of instruction.
Other educational and cultural agencies
Under current law, DOA administers an Educational Telecommunications
Access Program under which DOA provides Internet access and two-way interactive
video links to educational agencies. Under that program, an educational agency,
subject to certain exceptions, may request access to either one data line for Internet
access or one video link and is charged a monthly fee for that access. Any costs
incurred by DOA that exceed that monthly fee are paid from the universal service
fund, which is a separate trust fund that consists of contributions made by certain
telecommunications providers and that is used to promote universal access to
telecommunications services (universal service). In addition, DOA receives aid from
a federal program that supports universal service, commonly referred to as the
E-Rate Program, that DOA uses to pay administrative expenses and to reimburse
the Building Commission for public debt incurred in providing educational
technology infrastructure to school districts and public libraries.

This bill permits an elementary school, a secondary school, or a library to
request data lines, video links, and bandwidth access in addition to what is provided
under the Educational Telecommunications Access Program. The bill requires DOA
to apply for aid under the E-Rate Program to cover the costs of the additional data
lines and video links and the additional bandwidth access and, to the extent that the
aid does not cover those costs, to require an elementary school, secondary school, or
library to pay DOA a monthly fee that is sufficient to cover those costs.
Under current law, the Educational Approval Board (EAB) inspects and
approves private trade, correspondence, business, and technical schools
(EAB-approved schools) to protect the students, prevent fraud, and encourage
accepted educational standards at those schools. Currently, the EAB is attached to
DVA. This bill transfers the EAB to the Technical College System Board.
Under current law, the EAB may seek a court order to take possession of an
EAB-approved school's records if the records are in danger of being destroyed,
secreted, mislaid, or otherwise made unavailable. Current law, however, exempts
from the oversight of the EAB tax-exempt schools that were incorporated in this
state before January 1, 1992, or that had their headquarters and principal places of
business in this state before 1970; schools that are licensed or approved, and
supervised, by other state agencies; schools approved by DPI for the training of
teachers; and schools accredited by accrediting agencies recognized by the EAB
(schools not approved by the EAB).
This bill permits the EAB to take possession of the student records of an
EAB-approved school or a school not approved by the EAB if the school discontinues
its operations, proposes to discontinue its operations, or is in imminent danger of
discontinuing its operations as determined by the EAB and if the EAB determines
that those records are in danger of being destroyed, secreted, mislaid, or otherwise
made unavailable to the persons who are the subjects of those records. The bill also
permits the EAB to seek a court order authorizing the EAB to take possession of the
student records of an EAB-approved school or a school not approved by the EAB if
necessary to protect those records from being destroyed, secreted, mislaid, or
otherwise made unavailable to the persons who are the subjects of those records.
Under current law, the Higher Educational Aids Board awards Wisconsin
higher education grants (WHEG grants) to undergraduates enrolled at least half
time at nonprofit public institutions of higher education or tribally controlled
colleges in this state. Currently, a WHEG grant may not exceed $2,500 for any
academic year. WHEG grants for UW System students are funded in part from
moneys received by the UW System for auxiliary enterprises, such as dining halls
and parking facilities. This bill increases the maximum grant amount to $3,000 for
any academic year and eliminates the UW System's auxiliary enterprises as a
funding source for WHEG grants.
Under current law, the Arts Board must provide grants to individuals or groups
of exceptional talent engaged in the arts and may contract with individuals,
organizations, units of government, and institutions for services furthering the
development of the arts and humanities. This bill requires the Arts Board to provide
grants to American Indian individuals or groups of exceptional talent engaged in the

arts and permits the Arts Board to contract with American Indian individuals,
organizations, institutions, and tribal governments for services furthering the
development of the arts and humanities.
Current law authorizes six unclassified division administrator positions for the
State Historical Society of Wisconsin. This bill reduces that number to five.
employment
Under current law, in local government employment other than law
enforcement and fire fighting employment, if a dispute relating to the terms of a
proposed collective bargaining agreement has not been settled after a reasonable
period of negotiation and after mediation by the Wisconsin Employment Relations
Commission (WERC), either party, or the parties jointly, may petition WERC to
initiate compulsory, final, and binding arbitration with respect to any dispute
relating to wages, hours, and conditions of employment. If WERC determines, after
investigation, that an impasse exists and that arbitration is required, WERC must
submit to the parties a list of seven arbitrators, from which the parties alternately
strike names until one arbitrator is left. As one alternative to a single arbitrator,
WERC may provide for an arbitration panel that consists of one person selected by
each party and one person selected by WERC. As another alternative, WERC may
provide a process that allows for a random selection of a single arbitrator from a list
of seven names submitted by WERC. Under current law, an arbitrator or arbitration
panel must adopt the final offer of one of the parties on all disputed issues, which is
then incorporated into the collective bargaining agreement.
Under current law, however, this process does not apply to a dispute over
economic issues involving a collective bargaining unit consisting of school district
professional employees if WERC determines, subsequent to an investigation, that
the employer has submitted a qualified economic offer (QEO). Under current law, a
QEO consists of a proposal to maintain the percentage contribution by the employer
to the employees' existing fringe benefit costs and the employees' existing fringe
benefits and to provide for an annual average salary increase having a cost to the
employer at least equal to 2.1 percent of the existing total compensation and fringe
benefit costs for the employees in the collective bargaining unit plus any fringe
benefit savings. This bill eliminates the QEO exception from the compulsory, final,
and binding arbitration process.
Under the current prevailing wage law, certain laborers, workers, mechanics,
and truck drivers employed on a state or local project of public works must be paid
at the rate paid for a majority of the hours worked in the person's trade or occupation
in the county in which the project is located. Current law requires each contractor,
subcontractor, and agent performing work on a project that is subject to the
prevailing wage law to keep records indicating the name and trade or occupation of
every person performing work that is subject to the prevailing wage law and an
accurate record of the number of hours worked by each of those persons and the
actual wages paid for those hours worked. This bill requires a contractor,
subcontractor, or agent performing work on a project that is subject to the prevailing
wage law, other than a state highway project, to submit on a weekly basis a certified

record of that information for the preceding week to the local governmental unit or
state agency authorizing the work.
Under current law, DWD collects an annual assessment from each worker's
compensation insurer and self-insured employer doing business in this state and
uses the assessments to administer the worker's compensation program. This bill
requires DWD to use a portion of the assessments to conduct a study of injuries to
health care workers caused by lifting; to develop and distribute informational
materials that promote a lift-free working environment for health care workers; and
to distribute grants to health care facilities and providers to assist in implementing
a lift-free working environment for health care workers.
Current law requires the Wisconsin Technical College System (WTCS) Board
to provide a school-to-work program, including a school-to-work program for
children-at-risk in Milwaukee County, and a work-based learning program under
which the WTCS Board awards grants to tribal colleges for programs that provide
occupational training and work-based learning experiences to youths and adults.
This bill transfers administration of these programs to the Governor's Work-Based
Learning Board.
Environment
Water quality
Under the Clean Water Fund Program, Wisconsin makes loans at subsidized
interest rates for projects for controlling water pollution, including sewage
treatment plants. This bill sets the present value of the Clean Water Fund Program
subsidies that may be provided during the 2005-07 biennium at $136,600,000. The
bill also increases the general obligation bonding authority for the Clean Water Fund
Program by $9,600,000.
Under the Safe Drinking Water Loan Program, Wisconsin makes loans at
subsidized interest rates to local governmental units for projects for the construction
or modification of public water systems. This bill sets the present value of the Safe
Drinking Water Loan Program subsidies that may be provided during the 2005-07
biennium at $13,500,000. The bill also increases the general obligation bonding
authority for the Safe Drinking Water Loan Program by $6,100,000.
Under current law, DNR provides financial assistance for measures to reduce
water pollution from nonpoint (diffuse) sources. This bill increases the general
obligation bonding authority for nonpoint source financial assistance by $6,000,000.
Under current law, DNR also provides financial assistance for the management
of urban storm water runoff and for flood control and riparian restoration projects.
This bill increases the general obligation bonding authority for these projects by
$4,700,000.
Under current law, DNR compensates landowners or lessees of properties on
which contaminated wells are located for the costs of treating the well water or of
constructing a new well or obtaining clean water from another source. This bill
authorizes DNR also to provide compensation for claims solely for the costs of
abandoning a well that is unused or that poses a hazard to health or safety.

Air quality
The federal Clean Air Act requires certain stationary sources of air pollution,
such as large factories, to obtain operation permits from DNR. State law requires
additional stationary sources of air pollution to obtain operation permits. Under
current law, DNR sets the fees to be paid by the operator of any stationary source for
which an operation permit is required. The fees are based on the amount of
pollutants that a stationary source emits.
This bill sets different fees for stationary sources of air pollution for which an
operation permit is required under state law, but not under the Clean Air Act. The
fees are $1,500 per year or $3,000 per year depending on the type of operation permit.
The bill also sets fees of $300 per year for stationary sources that are exempt from
the requirement to obtain an operation permit but that annually emit more than
three tons of a regulated pollutant.
Other environment
This bill transfers $10,860,600 in fiscal year 2005-06 and $20,000,000 in fiscal
year 2006-07 from the petroleum inspection fund to the general fund. The bill
transfers $5,842,100 in fiscal year 2005-06 and $5,742,100 in fiscal year 2006-07
from the recycling fund to the general fund. The bill also transfers $4,200,000 in
fiscal year 2005-06 and $800,000 in fiscal year 2006-07 from the environmental fund
to the general fund.
Under the Land Recycling Loan Program, Wisconsin makes interest-free loans
to political subdivisions for projects to remedy contamination at sites owned by the
political subdivisions where the contamination has affected, or threatens to affect,
groundwater or surface water. This bill sets the present value of the Land Recycling
Loan Program subsidies that may be provided during the 2005-07 biennium at
$3,300,000.
Current law authorizes DNR to remedy environmental contamination in some
situations. This bill increases the authorized general obligation bonding authority
to finance that remedial action by $3,000,000.
This bill authorizes DNR to contract with a nonprofit organization for services
to assist businesses to reduce the amount of solid waste they generate or to reuse or
recycle solid waste.
Current law imposes a recycling fee of $3 per ton on most solid waste that is
disposed of at a landfill. This bill exempts from the recycling fee waste material that
is disposed of by companies that make paper or paperboard from wastepaper, that
cannot be used to make paper or paperboard, and that was acquired in the normal
course of recycling.
Current law authorizes persons, including government agencies, to use
electronic means to conduct transactions. This bill authorizes DNR to charge fees
to cover the costs of electronically conducting transactions under the environmental
programs administered by DNR.
Gambling
Current law prohibits any employee in the Lottery Division of DOR (division)
from being employed by a lottery vendor while an employee in the division and for
two years following the person's termination of employment. This bill eliminates the

two-year provision if DOR has entered into a contract with the vendor to perform
lottery functions that were previously performed by the employee while he or she was
employed in the division. In addition, the bill provides that DOR may not enter into
a contract for lottery services unless the contract requires the vendor to offer
employment to those employees in the division who performed those services and
whose positions were terminated.
Under current law, DOR may contract with retailers to sell lottery tickets.
However, DOR may not contract with retailers who are delinquent in paying state
taxes or in making contributions to the unemployment reserve fund. This bill
prohibits DOR from contracting with retailers who owe payments to the work injury
supplemental benefit fund as a result of the death or maiming of an employee or who
owe payments to the uninsured employers fund (which is used to pay compensation
to injured employees of employers who do not have worker's compensation
insurance).
This bill authorizes DOR to use the procedures under current law for assessing,
collecting, and reviewing delinquent income and franchise taxes to assess, collect,
and review any unpaid amount owed by a retailer to DOR in connection with the
state lottery.
health and human services
Medical Assistance
Under current law, DHFS must collect and analyze health care information
from health care providers other than hospitals and ambulatory surgery centers and,
from the data collected, prepare certain reports. The Board on Health Care
Information, attached to DHFS, advises DHFS on the collection, analysis, and
dissemination of health care information, oversees the reports issued by DHFS, and
develops direction for health care information collection.
This bill eliminates the Board on Health Care Information on October 1, 2005,
and replaces it with a nine-member Health Care Quality and Patient Safety Board
(HCQPSB), attached to DOA, which assumes the duties and powers of the Board on
Health Care Information. In addition, the bill directs the HCQPSB to study and
make recommendations concerning the feasibility of creating a centralized physician
information database; study and make recommendations regarding the rules
required and authorized to be promulgated by DHFS concerning the collection,
analysis, and dissemination of health care information; develop a plan to deploy
health care information systems technology for health care quality, safety, and
efficiency; annually assess the extent to which health care providers use automated
information and decision support systems; develop a plan to automate all health care
systems by 2010; and award grants or make loans to clinics, health maintenance
organizations, hospitals, or physicians for various projects.
The bill prohibits DHFS from enforcing rules promulgated before the date this
bill becomes law that relate to the collection from physicians of workforce and
practice information, health care plan affiliations, and hospital privileges and from
dentists, chiropractors, and podiatrists of workforce and practice information.
Beginning July 1, 2007, the bill also prohibits DHFS from enforcing rules
promulgated before that date that relate to physician claims data. DHFS may

promulgate rules that relate to the collection and dissemination of health care
information only after HCQPSB approves them.
The bill creates the health care quality improvement fund, a segregated fund
that consists of moneys transferred from the injured patients and families
compensation fund, the net proceeds of certain revenue obligations, a portion of the
annual assessments levied on health care providers other than hospitals and
ambulatory surgery centers, the repayment of any loans made by the HCQPSB, and
any moneys transferred by the secretary of administration. Moneys in the health
care quality improvement fund are used for the general program operations of the
HCQPSB, for grants awarded or loans made by the HCQPSB, and for benefits under
the Medical Assistance (MA) program, including payments for direct graduate
medical education, a major managed care supplement, a pediatric services
supplement, rural hospital supplements, and an essential access city hospital.
Under current law, WHEFA provides financial assistance to health facilities
and hospitals. This bill prohibits WHEFA from providing financial assistance unless
the health facility or hospital demonstrates to the HCQPSB that the health facility
or hospital is making progress to improve medical information systems technology.
Under current law, certain health care providers are required to carry health
care liability insurance with specified liability limits. The injured patients and
families compensation fund pays, on behalf of a health care provider who is subject
to the health care liability insurance requirements, the portion of a medical
malpractice claim that exceeds the limits of the health care provider's health care
liability insurance. Moneys in the fund are derived from annual assessments paid
by the health care providers who are subject to the health care liability insurance
requirements.
This bill transfers $169,703,400 in fiscal year 2005-06 and $9,714,000 in fiscal
year 2006-07 from the injured patients and families compensation fund to the health
care quality improvement fund, as created in the bill.
This bill creates a program for the issuance of revenue obligations to fund MA
costs. The amount of expenditures for the program that may be paid from these
revenue obligations may not exceed $130,000,000. The bill provides that the
principal and interest costs on the revenue obligations are to be paid from excise
taxes that are currently imposed on the sale of liquor, fermented malt beverages,
cigarettes, and tobacco products.
Currently, DHFS administers several programs under waivers of federal
Medicaid laws under which MA recipients who reside in certain institutions or who
meet certain levels of care requirements are relocated into their communities and
provided home and community-based services and long-term care support services.
This bill authorizes DHFS to request a waiver of federal Medicaid laws to
provide home or community-based services to MA recipients who have serious
mental illnesses and who meet certain level of care requirements for services in
nursing homes. If DHFS receives the waiver, DHFS may use federal Medicaid funds
to contract with a county or a private agency to administer the home or
community-based services under the Community Opportunities and Recovery
Program created in the bill.

This bill requires DHFS to collect assessments on health maintenance
organizations (HMOs) that contract with DHFS to provide health care to recipients
of MA or the Badger Care health care program (BadgerCare). The assessment is 6
percent of each HMO's annual gross revenues. The first assessment is due on March
31, 2006. The assessments are deposited into the MA trust fund, from which DHFS
annually must distribute moneys to supplement MA payments and BadgerCare
payments to HMOs, to assist in meeting increasing costs, and for other
reimbursement needs that DHFS identifies.
Under current law, a family, or a child who does not reside with his or her
parent, may be eligible for health care coverage under BadgerCare if the child's or
family's income does not exceed 185 percent of the federal poverty line and the child
or family meets certain nonfinancial criteria.
This bill expands BadgerCare to provide health care coverage to an unborn
child whose mother is not eligible for BadgerCare or for MA, except for certain
emergency services. Current income requirements apply. The unborn child and the
unborn child's mother must also meet the current nonfinancial eligibility
requirements, except that the unborn child is not required to have a social security
number and the unborn child's mother need not be a U.S. citizen or a qualifying alien,
may be an inmate of a public institution, and need not provide a social security
number if she is not a U.S. citizen or qualifying alien.
Under current law, nursing homes and intermediate care facilities for the
mentally retarded (ICFMRs) must pay to the state an assessment on each bed for
which they are licensed. The assessments are $75 per calendar month per licensed
bed of a nursing home and $445 per calendar month per licensed bed of an ICFMR.
A portion of the bed assessment revenue is used to pay MA benefits.
This bill increases the amount of the assessment per licensed bed of a nursing
home to up to $125 per calendar month and the amount of the assessment per
licensed bed of an ICFMR to up to $523 per calendar month in fiscal year 2005-06
and up to $587 per calendar month in fiscal year 2006-07.
Under current law, DHFS reimburses school districts, cooperative educational
service agencies (CESAs), and DPI 60 percent of the amount that the state receives
as federal Medicaid reimbursement for health care services that school districts,
CESAs, and DPI provide in schools to pupils who are eligible for MA. DHFS may
supplement MA payments for these services if the total of the reimbursement and
the supplements does not exceed federal Medicaid payment limitations. This bill
eliminates the authority for DHFS to supplement MA payments for school-based
services provided to pupils who are eligible for MA.
Currently, DHFS administers a Community Integration Program (CIP II),
under which MA is paid to counties to provide home and community-based services
to elderly and physically disabled persons who meet the requirements for
MA-reimbursed nursing home care or who are relocated from facilities to the
community.
This bill authorizes DHFS to provide enhanced CIP II funding for home and
community-based services to an MA-eligible person who relocates from a facility to

the community, if the number of people served does not exceed the number of nursing
home beds delicensed by DHFS.
Under current law, DHFS provides MA payments to nursing homes and some
community-based residential facilities under a detailed formula that assigns
cost-based payment for certain items and flat-rate payment for others. Beginning
July 1, 2006, this bill changes the payment formula from cost-based to flat-rate for
nonbillable direct care costs for registered nurses, licensed practical nurses, and
nurse's assistants.
Currently, in calculating amounts payable for direct care costs, DHFS must
establish separate standards for facilities that primarily serve the developmentally
disabled. Further, DHFS must establish the direct care component of the facility
payment rate for each facility by comparing actual allowable direct care cost
information for that facility, as adjusted for inflation, to the applicable standard.
Beginning July 1, 2006, this bill eliminates differences in standards for payment of
direct care costs between facilities that primarily serve the developmentally disabled
and those that do not, and eliminates the requirement that DHFS compare a
facility's actual allowable direct care costs to the standard.
Under current law, children who are in foster care and under the age of 18 are
eligible to receive MA. This bill extends eligibility for MA on January 1, 2007, to an
individual who is 18 or 19 years old, and on January 1, 2008, to an individual who
is 20 years old, and who on his or her 18th birthday was in foster care or treatment
foster care.
Current law authorizes DHFS to recover overpayments that DHFS made under
MA that resulted from a misstatement or omission of fact by an applicant that would
have affected an MA recipient's eligibility for MA benefits.
This bill provides that DHFS may also recover MA overpayments that resulted
from the failure of a recipient to report changes in status that would have affected
the recipient's eligibility for benefits or his or her cost-sharing requirements. The
bill provides that DHFS may recover BadgerCare overpayments for the same
reasons for which DHFS may recover MA overpayments.
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