Amendment MR8 SA1-AB1

AB1-SA1,10,24 49.45 (6z) (a) (intro.) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department may distribute funding in each fiscal year to supplement payment for services to hospitals that enter into indigent care agreements, in accordance with the approved state plan for services under 42 USC 1396a, with relief agencies that administer the medical relief block grant under this chapter, if the department determines that the hospitals serve a disproportionate number of low-income patients with special needs. If no medical relief block grant under this chapter is awarded or if the allocation of funds to such hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department may distribute funds to hospitals that have not entered into indigent care agreements. The department may not distribute funds under this subsection to the extent that the distribution would do any of the following:

AB1-SA1, s. 9bq Section 9bq. 49.45 (8) (b) of the statutes is amended to read:

AB1-SA1,11,5 49.45 (8) (b) Reimbursement under s. 20.435 (4) (b), (gp), (o), and (w), and (xd) for home health services provided by a certified home health agency or independent nurse shall be made at the home health agency's or nurse's usual and customary fee per patient care visit, subject to a maximum allowable fee per patient care visit that is established under par. (c).

AB1-SA1, s. 9br Section 9br. 49.45 (24m) (intro.) of the statutes is amended to read:

AB1-SA1,11,11 49.45 (24m) (intro.) From the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), in order to test the feasibility of instituting a system of reimbursement for providers of home health care and personal care services for medical assistance recipients that is based on competitive bidding, the department shall:

AB1-SA1, s. 9bt Section 9bt. 49.45 (52) of the statutes is amended to read:

AB1-SA1,11,23 49.45 (52) Payment adjustments. Beginning on January 1, 2003, the department may, from the appropriation account under s. 20.435 (7) (b), make Medical Assistance payment adjustments to county departments under s. 46.215, 46.22, 46.23, or 51.42, or 51.437 or to local health departments, as defined in s. 250.01 (4), as appropriate, for covered services under s. 49.46 (2) (a) 2. and 4. d. and f. and (b) 6. b., c., f., fm., g., j., k., L., Lm., and m., 9., 12., 12m., 13., 15., and 16. Payment adjustments under this subsection shall include the state share of the payments. The total of any payment adjustments under this subsection and Medical Assistance payments made from appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd) may not exceed applicable limitations on payments under 42 USC 1396a (a) (30) (A).

AB1-SA1, s. 9bu Section 9bu. 49.45 (58) of the statutes is created to read:

AB1-SA1,12,9 49.45 (58) Health maintenance organization payments to hospitals. (a) The department shall develop a methodology for calculating rate increases for inpatient and outpatient hospital services in connection with the assessment imposed on hospitals under s. 50.375. The methodology shall incorporate encounter data provided by health maintenance organizations and information that the department uses to calculate the capitated rates that the department pays health maintenance organizations for providing services to recipients of medical assistance. The department shall publicly disclose the methodology. The department shall review the methodology at least once every 12 months.

AB1-SA1,12,12 (b) The department shall require, as a term of contracts with health maintenance organizations to provide medical assistance services, that the health maintenance organization do all of the following:

AB1-SA1,12,15 1. Make monthly prospective payments, calculated using the methodology under par. (a), to hospitals that serve medical assistance recipients who are enrolled in the health maintenance organization.

AB1-SA1,12,19 2. Calculate the amounts that result from applying the rate increases that are derived using the methodology under par. (a) to services for recipients of medical assistance for which hospitals submit claims to the health maintenance organization.

AB1-SA1,12,24 3. Within 90 days after the end of each 6-month period, compare the amounts that the health maintenance organization paid hospitals under subd. 1. for the 6-month period with the amounts calculated under subd. 2. for services provided during that same period. If the amounts under subd. 2. exceed the amounts of the payments under subd. 1., pay hospitals the difference within 90 days.

AB1-SA1,13,5 (c) If the amounts that a health maintenance organization paid hospitals under par. (b) 1. for a 6-month period exceed the amounts calculated under par. (b) 2. for services provided during the same period, hospitals shall pay the health maintenance organization the difference within 90 days after the comparison of amounts under par. (b) 3. is completed.

AB1-SA1,13,12 (d) If the department determines that a health maintenance organization has not complied with a condition under par. (b), the department shall require the health maintenance organization to comply with the condition within 15 days after the department's determination. The department may terminate a contract with a health maintenance organization for failure to comply with a condition under par. (b). The department shall audit health maintenance organizations to determine whether they have complied with the conditions under par. (b).

AB1-SA1,13,21 (e) If a health maintenance organization and hospital cannot resolve the amount that a health maintenance organization owes a hospital under par. (b) 3. or that a hospital owes a health maintenance organization under par. (c), and either the health maintenance organization or the hospital, within 6 months after the end of the time period to which the disputed amount relates, requests that the department determine the amount owed, the department shall determine the amount within 90 days after the request is made. The health maintenance organization or hospital is, upon request, entitled to a contested case hearing under ch. 227 on the department's determination.

AB1-SA1, s. 9cb Section 9cb. 49.472 (6) (a) of the statutes is amended to read:

AB1-SA1,14,3 49.472 (6) (a) Notwithstanding sub. (4) (a) 3., from the appropriation account under s. 20.435 (4) (b), (gp), or (w), or (xd), the department shall, on the part of an individual who is eligible for medical assistance under sub. (3), pay premiums for or purchase individual coverage offered by the individual's employer if the department determines that paying the premiums for or purchasing the coverage will not be more costly than providing medical assistance.

AB1-SA1, s. 9cc Section 9cc. 49.472 (6) (b) of the statutes is amended to read:

AB1-SA1,14,8 49.472 (6) (b) If federal financial participation is available, from the appropriation account under s. 20.435 (4) (b), (gp), or (w), or (xd), the department may pay medicare Part A and Part B premiums for individuals who are eligible for medicare and for medical assistance under sub. (3).

AB1-SA1, s. 9cd Section 9cd. 49.473 (5) of the statutes is amended to read:

AB1-SA1,14,14 49.473 (5) The department shall audit and pay, from the appropriation accounts under s. 20.435 (4) (b), (gp), and (o), and (xd), allowable charges to a provider who is certified under s. 49.45 (2) (a) 11. for medical assistance on behalf of a woman who meets the requirements under sub. (2) for all benefits and services specified under s. 49.46 (2).

AB1-SA1, s. 9ce Section 9ce. 50.375 of the statutes is created to read:

AB1-SA1,14,22 50.375 Assessment. (1) Except as provided in subs. (2) and (7), for the privilege of doing business in this state, there is imposed on each hospital an annual assessment, based on the hospital's gross patient revenue, that each hospital shall pay quarterly by September 1, December 1, March 1, and June 1 of each year, beginning with the payment due by September 1, 2008, except that the entire annual assessment for fiscal year 2007-08 shall be paid by June 1, 2008. The assessments shall be deposited into the hospital assessment fund.

AB1-SA1,15,2 (2) At the discretion of the department, a hospital that is unable timely to make a payment by a date specified under sub. (1) may be allowed to make a delayed payment. A determination by the department that a hospital may not make a delayed payment under this subsection is final and is not subject to review under ch. 227.

AB1-SA1,15,5 (3) The amount of each hospital's assessment shall be based on the information that shall be provided to the department under s. 153.46 (5) or shall be based on any other source that is approved in the state plan for services under 42 USC 1396.

AB1-SA1,15,10 (4) The department shall verify the amount of each hospital's gross patient revenue and shall determine the amount of the assessment owed by each hospital based on a uniform rate that is applicable to total gross patient revenue that the department estimates will yield the amounts specified in the appropriation schedule under s. 20.005 (3) for the appropriation accounts under s. 20.435 (4) (xc) and (xd).

AB1-SA1,15,12 (5) The department shall levy, enforce, and collect the assessments under this section and shall develop and distribute forms necessary for these purposes.

AB1-SA1,15,19 (6) If the department determines that any portion of the revenue collected under sub. (5) to provide Medical Assistance program benefits and payment increases for inpatient and outpatient hospital services as fee for service or through health maintenance organizations or to support the Medical Assistance Program is not eligible for federal financial participation, the department will refund that amount of revenue to hospitals in proportion to each hospital's payment of the assessment.

AB1-SA1,15,21 (7) This section does not apply to a critical access hospital, as defined in s. 50.33 (1g), or to an institution for mental diseases, as defined in s. 46.011 (1m).

AB1-SA1,16,2 (8) Sections 77.59 (1) to (5), (6) (intro.), (a), and (c), and (7) to (10), 77.60 (1) to (7), (9), and (10), 77.61 (9) and (12) to (14), and 77.62, as they apply to the taxes under subch. III of ch. 77, apply to the assessment under this section, except that the amount of any assessment collected under sub. (1) shall be deposited in the hospital assessment fund.

AB1-SA1,16,5 (9) By December 31, 2008, and by every December 31 thereafter, the department shall report to the joint committee on finance all of the following information for the immediately previous state fiscal year:

AB1-SA1,16,6 (a) The total amount of assessments collected under this section.

AB1-SA1,16,8 (b) The total amount of assessments collected from each hospital under this section.

AB1-SA1,16,10 (c) The total amounts that the department determines were paid to health maintenance organizations for increased Medical Assistance payments to hospitals.

AB1-SA1,16,12 (d) The total amount of payments made to each hospital by health maintenance organizations under s. 49.45 (58) (b) 1.

AB1-SA1,16,16 (e) The total amount of Medical Assistance payments made to each hospital and the portion of the Medical Assistance capitated payments made to health maintenance organizations for inpatient and outpatient hospital services from appropriation accounts of general purpose revenues.

AB1-SA1,16,19 (f) The total amounts, including the amounts specified under par. (c), that the department determines were paid to health maintenance organizations for Medical Assistance payments to hospitals.

AB1-SA1,16,22 (g) The results of any audits conducted by the department under s. 49.45 (58) concerning Medical Assistance payments and any actions taken by the department as a result of such an audit.

AB1-SA1, s. 9cf Section 9cf. 59.58 (6) (cb) of the statutes is created to read:

AB1-SA1,17,3 59.58 (6) (cb) The authority shall be responsible for sponsoring, developing, constructing, and operating a commuter rail transit system connecting the cities of Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.

AB1-SA1, s. 9cg Section 9cg. 59.58 (6) (cr) of the statutes is amended to read:

AB1-SA1,17,8 59.58 (6) (cr) The authority may hire staff, conduct studies, and expend funds essential to the preparation of the report specified in par. (e) and in furtherance of its responsibility under par. (cb) to develop and construct the KRM commuter rail link.

AB1-SA1, s. 9ch Section 9ch. 59.58 (6) (e) 3g. of the statutes is created to read:

AB1-SA1,17,13 59.58 (6) (e) 3g. A study on the feasibility of adding a commuter rail stop and station at points where any proposed commuter rail route would intersect National Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or both.

AB1-SA1, s. 9ci Section 9ci. 59.58 (6) (e) 3m. of the statutes is created to read:

AB1-SA1,17,17 59.58 (6) (e) 3m. A study on the feasibility of extending any proposed commuter rail project through the 30th Street corridor in the city of Milwaukee to the northern county line of Milwaukee County.

AB1-SA1, s. 9cj Section 9cj. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.

AB1-SA1, s. 9ck Section 9ck. 59.58 (6) (f) of the statutes is created to read:

AB1-SA1,17,24 59.58 (6) (f) 1. The authority may issue bonds, the principal and interest on which are payable exclusively from all or a portion of any revenues received by the authority. The authority may secure its bonds by a pledge of any income or revenues from any operations, rent, aids, grants, subsidies, contributions, or other source of moneys whatsoever.

AB1-SA1,18,4 2. The authority may issue bonds in an aggregate principal amount not to exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued under this subdivision, for the purpose of providing funds for the anticipated local funding share required for initiating KRM commuter rail link service.

AB1-SA1,18,6 3. Neither the governing body of the authority nor any person executing the bonds is personally liable on the bonds by reason of the issuance of the bonds.

AB1-SA1,18,11 4. The bonds of the authority are not a debt of the counties that created the authority. Neither these counties nor the state are liable for the payment of the bonds. The bonds of the authority shall be payable only out of funds or properties of the authority. The bonds of the authority shall state the restrictions contained in this subdivision on the face of the bonds.

AB1-SA1,18,25 5. Bonds of the authority shall be authorized by resolution of the authority's governing body. The bonds may be issued under such a resolution or under a trust indenture or other security instrument. The bonds may be issued in one or more series and may be in the form of coupon bonds or registered bonds under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest at the rates, be in the denominations, have the rank or priority, be executed in the manner, be payable in the medium of payment and at the places, and be subject to the terms of redemption, with or without premium, as the resolution, trust indenture, or other security instrument provides. The authority may sell the bonds at public or private sales at the price or prices determined by the authority. If a member of the governing body of the authority whose signature appears on any bonds or coupons ceases to be a member of the governing body of the authority before the delivery of such obligations, the member's signature shall, nevertheless, be valid for all purposes as if the member had remained a member until delivery of the bonds.

AB1-SA1,19,12 6. The authority may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. The authority may issue refunding bonds at such time prior to the maturity or redemption of the refunded bonds as the authority deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium on the bonds, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture, or other security instruments. To the extent applicable, refunding bonds are subject to subd. 5.

AB1-SA1, s. 9cL Section 9cL. 66.0615 (1m) (f) 2. of the statutes is amended to read:

AB1-SA1,19,18 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a), and (15b), 77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and 77.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described under subd. 1.

AB1-SA1, s. 9cm Section 9cm. 70.111 (23) of the statutes is amended to read:

AB1-SA1,19,25 70.111 (23) Vending machines. All machines that automatically dispense soda water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage under s. 77.54 (20) (a) and (b) food and food ingredient, as defined in s. 77.51 (3t), upon the deposit in the machines of specified coins or currency, or insertion of a credit card, in payment for the soda water beverages, food or beverages food and food ingredient, as defined in s. 77.51 (3t).

AB1-SA1, s. 9cn Section 9cn. 71.05 (1) (c) 9. of the statutes is created to read:

AB1-SA1,20,2 71.05 (1) (c) 9. The regional transit authority under s. 59.58 (6) (f).

AB1-SA1, s. 9co Section 9co. 71.07 (5e) (b) of the statutes is amended to read:

AB1-SA1,20,11 71.07 (5e) (b) Filing claims. Subject to the limitations provided in this subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first taxable year following the taxable year in which the claimant claims an exemption a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each taxable year for 2 years, the amount certified by the department of commerce that resulted from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9cp Section 9cp. 71.07 (5e) (c) 1. of the statutes is amended to read:

AB1-SA1,20,14 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9cr Section 9cr. 71.07 (5e) (c) 3. of the statutes is amended to read:

AB1-SA1,20,19 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48) 77.585 (9) is $7,500,000, as determined by the department of commerce.

AB1-SA1, s. 9dc Section 9dc. 71.22 (9) of the statutes is amended to read:

AB1-SA1,21,2 71.22 (9) "Person" includes corporations, unless the context requires otherwise. "Person" may include, as determined by the department, any individual, partnership, general partner of a partnership, limited liability company, registered limited liability partnership, foreign limited liability partnership, syndicate, estate, trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or organization.

AB1-SA1, s. 9dd Section 9dd. 71.255 of the statutes is created to read:

AB1-SA1,21,4 71.255 Combined reporting. (1) Definitions. In this section:

AB1-SA1,21,7 (a) "Combined group" means the group of all persons whose income and apportionment factors are considered under sub. (2) to determine the taxpayer's share of the net business income or loss that is apportionable to this state.

AB1-SA1,21,10 (b) "Combined report" means a return under s. 71.24 that is filed on a form prescribed by the department that specifies the income, credits, and tax of each taxpayer member of a commonly controlled group operating as a unitary business.

AB1-SA1,21,12 (c) "Commonly controlled group" means any of the following, but does not include an insurer that is exempt from taxation under s. 71.45 (1):

AB1-SA1,21,19 1. A parent corporation and any corporation or chain of corporations that are connected to the parent corporation by direct or indirect ownership by the parent corporation if the parent corporation owns stock representing more than 50 percent of the voting power of at least one of the connected corporations or if the parent corporation or any of the connected corporations owns stock that cumulatively represents more than 50 percent of the voting power of each of the connected corporations.

AB1-SA1,21,22 2. Any 2 or more corporations if a common owner, regardless of whether or not the owner is a corporation, directly or indirectly owns stock representing more than 50 percent of the voting power of the corporations or the connected corporations.

AB1-SA1,21,24 3. Any 2 or more corporations if stock representing more than 50 percent of the voting power in each corporation are interests that cannot be separately transferred.

AB1-SA1,22,5 4. Any 2 or more corporations if stock representing more than 50 percent of the voting power in each corporation is directly owned by, or for the benefit of, family members. In this subdivision, "family member" means an individual related by blood, marriage, or adoption within the 2nd degree of kinship as computed under s. 852.03 (2), 1995 stats., or the spouse of such an individual.

AB1-SA1,22,12 (d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that, regardless of where the corporation is located, would be subject to the taxes imposed under this chapter, if the corporation were doing business in this state. For purposes of this section, the business conducted by a pass-through entity that is directly or indirectly held by a corporation is considered the corporation's business proportionate to the corporation's distributive share of the pass-through entity's income. "Corporation" does not include a tax-option corporation.

AB1-SA1,22,13 (e) "Department" means the department of revenue.

AB1-SA1,22,17 (f) "Internal Revenue Code" means the Internal Revenue Code as defined in s. 71.22 (4) and (4m), including any provision of a federal tax treaty that expressly applies to the states of the United States, but not including any other application of a federal tax treaty.

AB1-SA1,22,22 (g) "Pass-through entity" means a general or limited partnership, any organization that is treated as a partnership for purposes of this chapter, a real estate investment trust, a regulated investment company, a real estate mortgage investment conduit, a financial asset securitization investment trust, a trust, or an estate.

AB1-SA1,23,2 (h) "Tax haven" means a jurisdiction that, for any taxable year, is identified by the organization for economic cooperation and development as a tax haven or as having a harmful, preferential tax regime or has no, or a nominal, effective tax on income and all of the following apply:

AB1-SA1,23,5 1. The jurisdiction has laws or practices that prevent the effective exchange of information, for tax purposes, with other governments on taxpayers benefiting from the tax regime.

AB1-SA1,23,10 2. The details of the legislative, legal, or administrative provisions of the jurisdiction's tax regime are not publicly available and apparent or are not consistently applied to similarly situated taxpayers or the information needed by tax authorities to determine a taxpayer's correct tax liability, including accounting records and underlying documentation, is not adequately available.

AB1-SA1,23,13 3. The jurisdiction facilitates the establishment of foreign-owned entities without requiring a local substantive presence or prohibits such entities from having any commercial impact on the local economy.

AB1-SA1,23,16 4. The tax regime explicitly or implicitly excludes the jurisdiction's resident taxpayers from taking advantage of the tax regime's benefits or prohibits enterprises that benefit from the regime from operating in the jurisdiction's domestic market.

AB1-SA1,23,20 5. The jurisdiction has created a tax regime that is favorable for tax avoidance, based upon an overall assessment of relevant factors, including whether the jurisdiction has a significant untaxed offshore financial or other services sector relative to its overall economy.

AB1-SA1,23,22 (i) "Taxpayer member" means a corporation that is subject to tax under s. 71.23 (1) or (2) and that is a member of a combined group.