SB707,14,311 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and
12Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
13Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Small
14Business Health Options Program Authority,
the Lower Fox River Remediation
15Authority, the Wisconsin Quality Home Care Authority, and the Bradley Center
16Sports and Entertainment Corporation shall include the following provision in every
17contract executed by them: "In connection with the performance of work under this
18contract, the contractor agrees not to discriminate against any employee or applicant
19for employment because of age, race, religion, color, handicap, sex, physical
20condition, developmental disability as defined in s. 51.01 (5), sexual orientation or
21national origin. This provision shall include, but not be limited to, the following:
22employment, upgrading, demotion or transfer; recruitment or recruitment
23advertising; layoff or termination; rates of pay or other forms of compensation; and
24selection for training, including apprenticeship. Except with respect to sexual
25orientation, the contractor further agrees to take affirmative action to ensure equal

1employment opportunities. The contractor agrees to post in conspicuous places,
2available for employees and applicants for employment, notices to be provided by the
3contracting officer setting forth the provisions of the nondiscrimination clause".
SB707, s. 28 4Section 28. 16.765 (4) of the statutes, as affected by 2009 Wisconsin Act 28,
5is amended to read:
SB707,14,126 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and
7Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
8Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Small
9Business Health Options Program Authority,
the Lower Fox River Remediation
10Authority, the Wisconsin Quality Home Care Authority, and the Bradley Center
11Sports and Entertainment Corporation shall take appropriate action to revise the
12standard government contract forms under this section.
SB707, s. 29 13Section 29. 16.765 (5) of the statutes, as affected by 2009 Wisconsin Act 28,
14is amended to read:
SB707,15,715 16.765 (5) The head of each contracting agency and the boards of directors of
16the University of Wisconsin Hospitals and Clinics Authority, the Fox River
17Navigational System Authority, the Wisconsin Aerospace Authority, the Health
18Insurance Risk-Sharing Plan Authority, the Small Business Health Options
19Program Authority,
the Lower Fox River Remediation Authority, the Wisconsin
20Quality Home Care Authority, and the Bradley Center Sports and Entertainment
21Corporation shall be primarily responsible for obtaining compliance by any
22contractor with the nondiscrimination and affirmative action provisions prescribed
23by this section, according to procedures recommended by the department. The
24department shall make recommendations to the contracting agencies and the boards
25of directors of the University of Wisconsin Hospitals and Clinics Authority, the Fox

1River Navigational System Authority, the Wisconsin Aerospace Authority, the
2Health Insurance Risk-Sharing Plan Authority, the Small Business Health Options
3Program Authority,
the Lower Fox River Remediation Authority, the Wisconsin
4Quality Home Care Authority, and the Bradley Center Sports and Entertainment
5Corporation for improving and making more effective the nondiscrimination and
6affirmative action provisions of contracts. The department shall promulgate such
7rules as may be necessary for the performance of its functions under this section.
SB707, s. 30 8Section 30. 16.765 (6) of the statutes, as affected by 2009 Wisconsin Act 28,
9is amended to read:
SB707,15,1910 16.765 (6) The department may receive complaints of alleged violations of the
11nondiscrimination provisions of such contracts. The department shall investigate
12and determine whether a violation of this section has occurred. The department may
13delegate this authority to the contracting agency, the University of Wisconsin
14Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
15Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
16the Small Business Health Options Program Authority, the Lower Fox River
17Remediation Authority, the Wisconsin Quality Home Care Authority, or the Bradley
18Center Sports and Entertainment Corporation for processing in accordance with the
19department's procedures.
SB707, s. 31 20Section 31. 16.765 (7) (intro.) of the statutes, as affected by 2009 Wisconsin
21Act 28
, is amended to read:
SB707,16,822 16.765 (7) (intro.) When a violation of this section has been determined by the
23department, the contracting agency, the University of Wisconsin Hospitals and
24Clinics Authority, the Fox River Navigational System Authority, the Wisconsin
25Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Small

1Business Health Options Program Authority,
the Lower Fox River Remediation
2Authority, the Wisconsin Quality Home Care Authority, or the Bradley Center Sports
3and Entertainment Corporation, the contracting agency, the University of Wisconsin
4Hospitals and Clinics Authority, the Fox River Navigational System Authority, the
5Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority,
6the Small Business Health Options Program Authority, the Lower Fox River
7Remediation Authority, the Wisconsin Quality Home Care Authority, or the Bradley
8Center Sports and Entertainment Corporation shall:
SB707, s. 32 9Section 32. 16.765 (7) (d) of the statutes, as affected by 2009 Wisconsin Act 28,
10is amended to read:
SB707,16,1811 16.765 (7) (d) Direct the violating party to take immediate steps to prevent
12further violations of this section and to report its corrective action to the contracting
13agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
14Navigational System Authority, the Wisconsin Aerospace Authority, the Health
15Insurance Risk-Sharing Plan Authority, the Small Business Health Options
16Program Authority,
the Lower Fox River Remediation Authority, the Wisconsin
17Quality Home Care Authority, or the Bradley Center Sports and Entertainment
18Corporation.
SB707, s. 33 19Section 33. 16.765 (8) of the statutes, as affected by 2009 Wisconsin Act 28,
20is amended to read:
SB707,17,1521 16.765 (8) If further violations of this section are committed during the term
22of the contract, the contracting agency, the Fox River Navigational System Authority,
23the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan
24Authority, the Small Business Health Options Program Authority, the Lower Fox
25River Remediation Authority, the Wisconsin Quality Home Care Authority, or the

1Bradley Center Sports and Entertainment Corporation may permit the violating
2party to complete the contract, after complying with this section, but thereafter the
3contracting agency, the Fox River Navigational System Authority, the Wisconsin
4Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Small
5Business Health Options Program Authority,
the Lower Fox River Remediation
6Authority, the Wisconsin Quality Home Care Authority, or the Bradley Center Sports
7and Entertainment Corporation shall request the department to place the name of
8the party on the ineligible list for state contracts, or the contracting agency, the Fox
9River Navigational System Authority, the Wisconsin Aerospace Authority, the
10Health Insurance Risk-Sharing Plan Authority, the Small Business Health Options
11Program Authority,
the Lower Fox River Remediation Authority, the Wisconsin
12Quality Home Care Authority, or the Bradley Center Sports and Entertainment
13Corporation may terminate the contract without liability for the uncompleted
14portion or any materials or services purchased or paid for by the contracting party
15for use in completing the contract.
SB707, s. 34 16Section 34. 16.85 (2) of the statutes, as affected by 2009 Wisconsin Act 28, is
17amended to read:
SB707,18,318 16.85 (2) To furnish engineering, architectural, project management, and other
19building construction services whenever requisitions therefor are presented to the
20department by any agency. The department may deposit moneys received from the
21provision of these services in the account under s. 20.505 (1) (kc) or in the general
22fund as general purpose revenue — earned. In this subsection, "agency" means an
23office, department, independent agency, institution of higher education, association,
24society, or other body in state government created or authorized to be created by the
25constitution or any law, which is entitled to expend moneys appropriated by law,

1including the legislature and the courts, but not including an authority created in
2subch. II of ch. 114 or, subch. III of ch. 149, or subch. III of ch. 635 or in ch. 52, 231,
3233, 234, 237, or 279.
SB707, s. 35 4Section 35. 16.865 (8) of the statutes, as affected by 2009 Wisconsin Act 28,
5is amended to read:
SB707,18,206 16.865 (8) Annually in each fiscal year, allocate as a charge to each agency a
7proportionate share of the estimated costs attributable to programs administered by
8the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
9may charge premiums to agencies to finance costs under this subsection and pay the
10costs from the appropriation on an actual basis. The department shall deposit all
11collections under this subsection in the appropriation account under s. 20.505 (2) (k).
12Costs assessed under this subsection may include judgments, investigative and
13adjustment fees, data processing and staff support costs, program administration
14costs, litigation costs, and the cost of insurance contracts under sub. (5). In this
15subsection, "agency" means an office, department, independent agency, institution
16of higher education, association, society, or other body in state government created
17or authorized to be created by the constitution or any law, that is entitled to expend
18moneys appropriated by law, including the legislature and the courts, but not
19including an authority created in subch. II of ch. 114 or , subch. III of ch. 149, or subch.
20III of ch. 635
or in ch. 52, 231, 232, 233, 234, 235, 237, or 279.
SB707, s. 36 21Section 36. 25.50 (1) (d) of the statutes is amended to read:
SB707,19,622 25.50 (1) (d) "Local government" means any county, town, village, city, power
23district, sewerage district, drainage district, town sanitary district, public inland
24lake protection and rehabilitation district, local professional baseball park district
25created under subch. III of ch. 229, long-term care district under s. 46.2895, local

1professional football stadium district created under subch. IV of ch. 229, local
2cultural arts district created under subch. V of ch. 229, public library system, school
3district or technical college district in this state, any commission, committee, board
4or officer of any governmental subdivision of this state, any court of this state, other
5than the court of appeals or the supreme court, or any authority created under s.
6114.61, 149.41, 231.02, 233.02 or, 234.02 , or 635.70.
SB707, s. 37 7Section 37. 40.02 (54) (m) of the statutes is created to read:
SB707,19,88 40.02 (54) (m) The Small Business Health Options Program Authority.
SB707, s. 38 9Section 38. 70.11 (41c) of the statutes is created to read:
SB707,19,1210 70.11 (41c) Small Business Health Options Program Authority. All property
11owned by the Small Business Health Options Program Authority, provided that the
12use of the property is primarily related to the purposes of the authority.
SB707, s. 39 13Section 39. 71.26 (1) (be) of the statutes, as affected by 2009 Wisconsin Act 28,
14is amended to read:
SB707,19,1915 71.26 (1) (be) Certain authorities. Income of the University of Wisconsin
16Hospitals and Clinics Authority, of the Health Insurance Risk-Sharing Plan
17Authority, of the Small Business Health Options Program Authority, of the
18Wisconsin Quality Home Care Authority, of the Fox River Navigational System
19Authority, and of the Wisconsin Aerospace Authority.
SB707, s. 40 20Section 40. 77.54 (9a) (a) of the statutes, as affected by 2009 Wisconsin Act 28,
21is amended to read:
SB707,20,222 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin
23Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health
24Insurance Risk-Sharing Plan Authority, the Small Business Health Options

1Program Authority,
the Wisconsin Quality Home Care Authority, and the Fox River
2Navigational System Authority.
SB707, s. 41 3Section 41. 101.055 (2) (a) of the statutes is amended to read:
SB707,20,84 101.055 (2) (a) "Agency" means an office, department, independent agency,
5authority, institution, association, society, or other body in state government created
6or authorized to be created by the constitution or any law, and includes the
7legislature and the courts, but excludes the Health Insurance Risk-Sharing Plan
8Authority and the Small Business Health Options Program Authority.
SB707, s. 42 9Section 42. 101.177 (1) (d) of the statutes, as affected by 2009 Wisconsin Act
1028
, is amended to read:
SB707,20,2111 101.177 (1) (d) "State agency" means any office, department, agency,
12institution of higher education, association, society, or other body in state
13government created or authorized to be created by the constitution or any law, that
14is entitled to expend moneys appropriated by law, including the legislature and the
15courts, the Wisconsin Housing and Economic Development Authority, the Bradley
16Center Sports and Entertainment Corporation, the University of Wisconsin
17Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Wisconsin
18Quality Home Care Authority, and the Wisconsin Health and Educational Facilities
19Authority, but excluding the Health Insurance Risk-Sharing Plan Authority, the
20Small Business Health Options Program Authority,
and the Lower Fox River
21Remediation Authority.
SB707, s. 43 22Section 43. 230.03 (3) of the statutes, as affected by 2009 Wisconsin Act 28,
23is amended to read:
SB707,21,824 230.03 (3) "Agency" means any board, commission, committee, council, or
25department in state government or a unit thereof created by the constitution or

1statutes if such board, commission, committee, council, department, unit, or the
2head thereof, is authorized to appoint subordinate staff by the constitution or
3statute, except a legislative or judicial board, commission, committee, council,
4department, or unit thereof or an authority created under subch. II of ch. 114 or,
5subch. III of ch. 149, or subch. III of ch. 635 or under ch. 52, 231, 232, 233, 234, 235,
6237, or 279. "Agency" does not mean any local unit of government or body within one
7or more local units of government that is created by law or by action of one or more
8local units of government.
SB707, s. 44 9Section 44. 230.80 (4) of the statutes is amended to read:
SB707,21,1710 230.80 (4) "Governmental unit" means any association, authority, board,
11commission, department, independent agency, institution, office, society, or other
12body in state government created or authorized to be created by the constitution or
13any law, including the legislature, the office of the governor, and the courts, but
14excluding the Health Insurance Risk-Sharing Plan Authority and the Small
15Business Health Options Program Authority
. "Governmental unit" does not mean
16any political subdivision of the state or body within one or more political subdivisions
17that is created by law or by action of one or more political subdivisions.
SB707, s. 45 18Section 45. 230.90 (1) (c) of the statutes is amended to read:
SB707,22,219 230.90 (1) (c) "Governmental unit" means any association, authority, board,
20commission, department, independent agency, institution, office, society or other
21body in state government created or authorized to be created by the constitution or
22any law, including the legislature, the office of the governor and the courts.
23"Governmental unit" does not mean the University of Wisconsin Hospitals and
24Clinics Authority, the Health Insurance Risk-Sharing Plan Authority, the Small
25Business Health Options Program Authority,
or any political subdivision of the state

1or body within one or more political subdivisions which is created by law or by action
2of one or more political subdivisions.
SB707, s. 46 3Section 46. Subchapter I (title) of chapter 635 [precedes 635.01] of the statutes
4is created to read:
SB707,22,55 CHAPTER 635
SB707,22,76 Subchapter i
7 General Provisions
SB707, s. 47 8Section 47. 635.02 (1) of the statutes is renumbered 635.02 (1g).
SB707, s. 48 9Section 48. 635.02 (1c) of the statutes is created to read:
SB707,22,1110 635.02 (1c) "Authority" means the Small Business Health Options Program
11Authority.
SB707, s. 49 12Section 49. 635.02 (1o) of the statutes is created to read:
SB707,22,1313 635.02 (1o) "Board" means the board of directors of the authority.
SB707, s. 50 14Section 50. 635.18 (1) of the statutes is amended to read:
SB707,22,1615 635.18 (1) Every Any small employer insurer shall may actively market health
16benefit plan coverage to small employers in the state.
SB707, s. 51 17Section 51. Subchapter II of chapter 635 [precedes 635.30] of the statutes is
18created to read:
SB707,22,1919 CHAPTER 635
SB707,22,2120 Subchapter II
21 HEALTH BENEFIT PLAN exchange
SB707,22,25 22635.30 Establishment of exchange; plans. (1) Subject to s. 635.45 (4), the
23authority shall establish and, by January 1, 2011, begin operating a health benefit
24plan exchange under which the authority shall enroll eligible groups and individuals
25in health benefit plans offered through the exchange.
SB707,23,6
1(2) (a) The commissioner shall determine the initial plan designs, including
2minimum benefit levels, for the health benefit plans that may be offered through the
3exchange. Thereafter, the authority may modify the plan designs as it determines
4necessary or appropriate. Both the commissioner and the authority, in specifying
5plan designs under this subsection, shall attempt to limit the degree of variation
6among plans and the number of different plan choices for exchange participants.
SB707,23,117 (b) Only health benefit plans that satisfy the requirements under par. (a) and
8that are approved by the authority may be offered by insurers through the exchange.
9Each plan offered through the exchange shall contain a detailed description of the
10benefits provided, including any maximum or minimum amounts, limitations, or
11exclusions.
SB707,23,14 12(3) The authority shall rank the health benefit plans that are offered through
13the exchange according to the benefits provided and place each one into one of the
14following 3 tiers:
SB707,23,1515 (a) A plan with full benefits shall be designated as a "gold" plan.
SB707,23,1716 (b) A plan providing 75 percent of the actuarial value of a "gold" plan shall be
17designated as a "silver" plan.
SB707,23,1918 (c) A plan providing 60 percent of the actuarial value of a "gold" plan shall be
19designated as a "bronze" plan.
SB707,23,21 20(4) The authority may eliminate a plan from the exchange only after notice to
21the insurer offering the plan.
SB707,23,23 22635.35 Participation in exchange. (1) All of the following shall be eligible
23to purchase coverage under a health benefit plan offered through the exchange:
SB707,23,2424 (a) A small employer.
SB707,24,2
1(b) A state employee who is a limited term employee and who is not eligible for
2coverage under a health care coverage plan under subch. IV of ch. 40.
SB707,24,53 (c) An individual who contracts with this state for the performance of services
4for the state and who is not eligible for coverage under a health care coverage plan
5under subch. IV of ch. 40.
SB707,24,12 6(2) The authority shall accept for enrollment through the exchange any small
7employer under sub. (1) (a) and any individual under sub. (1) (b) or (c) who applies
8for enrollment. An individual under sub. (1) (b) or (c) and an employee of a small
9employer under sub. (1) (a) may select coverage under any health benefit plan offered
10through the exchange, except that all employees of a single small employer must
11select coverage under health benefit plans that have been placed in the same tier
12under s. 635.30 (3) (a), (b), or (c).
SB707,24,16 13(3) The authority shall collect initial premiums for coverage under each health
14benefit plan from enrollees in the plan and disburse the initial premium collected to
15the insurer offering the plan, along with enrollment information about each
16individual or employee enrolled in the plan.
SB707,24,25 17635.37 Insurer requirements. (1) (a) Any insurer that is authorized to do
18business in this state, in one or more lines of insurance that includes health
19insurance, may offer coverage through the exchange. No insurer may offer or issue
20a health benefit plan to a small employer except through the exchange. An insurer
21that offers coverage through the exchange may offer only health benefit plans that
22satisfy the requirements under s. 635.30 (2) (a) and that are approved for the
23exchange by the authority. An insurer that offers coverage through the exchange
24must offer at least one health benefit plan in each tier under s. 635.30 (3) (a), (b), and
25(c).
SB707,25,3
1(b) Notwithstanding ss. 631.36 (4) and 632.749 (1) and (2), a health benefit plan
2issued to a small employer that is in effect on the day that the exchange begins
3operating may remain in effect until the end of its term but may not be renewed.
SB707,25,8 4(2) Premiums for coverage through the exchange may be based only on age, sex,
5geographic location, whether coverage is single or family, and plan design. For the
6purpose of determining premiums, an insurer shall pool together all individuals and
7employees who have coverage under all of the plans issued by the insurer through
8the exchange.
SB707,25,16 9(3) An insurer may not impose any annual or lifetime limits or any preexisting
10condition exclusions under any plan offered through the exchange. An insurer
11offering coverage through the exchange shall accept for enrollment any individual
12under s. 635.35 (1) (b) or (c) and any employee of a small employer under s. 635.35
13(1) (a) who applies for enrollment in a health benefit plan offered by the insurer
14through the exchange. Section 632.7495 applies to the renewability of an
15individual's or employee's coverage under a health benefit plan offered through the
16exchange.
SB707,25,20 17(4) An insurer that offers health benefit plans through the exchange shall
18establish a toll-free hotline for providing information to enrollees and other
19individuals and shall furnish such reasonable reports as the authority determines
20necessary for the administration of the exchange.
SB707,25,24 21(5) The authority may audit any insurer that provides coverage under a health
22benefit plan through the exchange for the purpose of ensuring that the insurer is
23providing covered individuals with the benefits provided for under this subchapter
24in a manner that does all of the following:
SB707,25,2525 (a) Complies with the provisions of this chapter.
SB707,26,1
1(b) Promotes positive health outcomes.
SB707,26,22 (c) Advances value-based and evidence-based medical practices.
SB707,26,53 (d) Avoids unnecessary operating and capital costs arising from inappropriate
4utilization or inefficient delivery of health care services, unwarranted duplication of
5services and infrastructure, or creation of excess care delivery capacity.
SB707,26,66 (e) Holds down the growth of health care costs.
SB707,26,15 7635.40 Intermediaries. An insurance intermediary that enrolls an
8individual under s. 635.35 (1) (b) or (c) in a health benefit plan through the exchange
9shall be paid a commission by the insurer offering the health benefit plan. An
10insurance intermediary that enrolls the employees of a small employer under s.
11635.35 (1) (a) in one or more health benefit plans through the exchange shall be paid
12a commission by each insurer offering a health benefit plan selected by an employee
13of the small employer. The authority shall determine the commission amounts that
14must be paid to intermediaries under this section after considering information
15provided to the commissioner under s. 628.81 with respect to health insurance.
SB707,26,19 16635.45 Administration; rules. (1) For payment of administrative expenses,
17the authority may impose a surcharge on each insurer offering health benefit plans
18through the exchange. The surcharge shall be based on an insurer's total premium
19collected through the exchange.
SB707,26,20 20(2) For administering the exchange the authority shall do all of the following:
SB707,26,2421 (a) In consultation with the commissioner, establish procedures for approving
22plans that may be offered through the exchange, for ranking plans into the tiers
23under s. 635.30 (3), and for determining whether a plan should continue to be offered
24or should be eliminated from the exchange.
SB707,27,2
1(b) Establish quality improvement standards for plans offered through the
2exchange.
SB707,27,43 (c) Establish a system for enrolling eligible groups and individuals, using a
4standard application form developed by the commissioner under sub. (5) (a).
SB707,27,65 (d) Establish procedures for collecting premiums and remitting premium
6payments and providing enrollment information to insurers.
SB707,27,97 (e) Establish, in consultation with the commissioner, the method for
8determining the amount of the surcharge under sub. (1) and establish the procedure
9for imposing and collecting the surcharge.
SB707,27,1110 (f) Establish a plan for publicizing the exchange and the eligibility
11requirements and enrollment procedures.
SB707,27,1312 (g) Establish and operate a service center to provide information to small
13employers, individuals, enrollees, and insurance intermediaries about the exchange.
SB707,27,1514 (h) Establish a mechanism for regular communication and cooperation with
15insurance intermediaries.
SB707,27,1716 (i) Establish an independent and binding appeals process for resolving disputes
17over eligibility and other determinations made by the authority.
SB707,27,18 18(3) The authority may do all of the following:
SB707,27,2019 (a) Contract with a 3rd-party administrator for the provision of services on
20behalf of the exchange.
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