Amendment SA1-SSA1-AB133

AB133-SSA1-SA1, s. 2335ye Section 2335ye. 196.795 (5) (i) 1. of the statutes is amended to read:

AB133-SSA1-SA1,360,8 196.795 (5) (i) 1. Shall consider the public utility affiliate as a wholly independent corporation and shall impute a capital structure to the public utility affiliate and establish a cost of capital for the public utility affiliate on a stand-alone basis;

AB133-SSA1-SA1, s. 2335yf Section 2335yf. 196.795 (5) (p) 1., 2., 3. and 4. of the statutes are renumbered 196.795 (6m) (b) 1., 2., 3. and 4.

AB133-SSA1-SA1, s. 2335yg Section 2335yg. 196.795 (5) (pm) 1. (intro.) of the statutes is repealed.

AB133-SSA1-SA1, s. 2335yh Section 2335yh. 196.795 (5) (pm) 1. a. of the statutes is renumbered 196.795 (6m) (a) 3.

AB133-SSA1-SA1, s. 2335yi Section 2335yi. 196.795 (5) (pm) 1. b. of the statutes is renumbered 196.795 (6m) (a) 5.

AB133-SSA1-SA1, s. 2335yj Section 2335yj. 196.795 (5) (pm) 1. c. of the statutes is renumbered 196.795 (6m) (a) 6.

AB133-SSA1-SA1, s. 2335yk Section 2335yk. 196.795 (5) (pm) 2. of the statutes is renumbered 196.795 (6m) (c) and amended to read:

AB133-SSA1-SA1,360,25 196.795 (6m) (c) Wholesale merchant plants. The assets of a wholesale merchant plant shall not be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a. if the requirements specified in s. 196.491 (3m) (a) 1. and 2. are satisfied or if the wholesale merchant plant qualifies for the exemption under s. 196.491 (3m) (e).

AB133-SSA1-SA1, s. 2335yL Section 2335yL. 196.795 (5) (pm) 3. of the statutes is renumbered 196.795 (6m) (d) and amended to read:

AB133-SSA1-SA1,361,6 196.795 (6m) (d) Foreign affiliates. The assets of a foreign affiliate shall be included in the sum of the assets of a public utility affiliate under par. (p) (b) 1. a., b. or c. and shall not be included in a nonutility affiliate's total assets under par. (p) (b) 2. a.

AB133-SSA1-SA1, s. 2335ym Section 2335ym. 196.795 (6m) (title) of the statutes is created to read:

AB133-SSA1-SA1,361,8 196.795 (6m) (title) Asset cap.

AB133-SSA1-SA1, s. 2335yn Section 2335yn. 196.795 (6m) (a) (intro.) of the statutes is created to read:

AB133-SSA1-SA1,361,10 196.795 (6m) (a) Definitions. (intro.) In this subsection:

AB133-SSA1-SA1, s. 2335yo Section 2335yo. 196.795 (6m) (a) 1. of the statutes is created to read:

AB133-SSA1-SA1,361,14 196.795 (6m) (a) 1. "Contributor public utility affiliate" means a public utility affiliate that has contributed its transmission facilities to the transmission company under s. 196.485 (5) (b).

AB133-SSA1-SA1, s. 2335yp Section 2335yp. 196.795 (6m) (a) 2. of the statutes is created to read:

AB133-SSA1-SA1,361,17 196.795 (6m) (a) 2. "Eligible asset" means an asset of a nonutility affiliate that is used for any of the following:

AB133-SSA1-SA1,361,19 a. Producing, generating, transmitting, delivering, selling or furnishing gas, oil, electricity or steam energy.

AB133-SSA1-SA1,361,21 b. Providing an energy management, conservation or efficiency product or service or a demand-side management product or service.

AB133-SSA1-SA1,361,22 c. Providing an energy customer service, including metering or billing.

AB133-SSA1-SA1,361,23 d. Recovering or producing energy from waste materials.

AB133-SSA1-SA1,361,24 e. Processing waste materials.

AB133-SSA1-SA1,362,3 f. Manufacturing, distributing or selling products for filtration, pumping water or other fluids, processing or heating water, handling fluids or other related activities.

AB133-SSA1-SA1,362,4 g. Providing a telecommunications service, as defined in s. 196.01 (9m).

AB133-SSA1-SA1, s. 2335yq Section 2335yq. 196.795 (6m) (a) 4. of the statutes is created to read:

AB133-SSA1-SA1,362,8 196.795 (6m) (a) 4. "Generation assets" means assets that are classified as electric generation assets on the books of account of a public utility, as determined by the commission.

AB133-SSA1-SA1, s. 2335yr Section 2335yr. 196.795 (6m) (b) (title) of the statutes is created to read:

AB133-SSA1-SA1,362,10 196.795 (6m) (b) In general.

AB133-SSA1-SA1, s. 2335ys Section 2335ys. 196.795 (6m) (e) of the statutes is created to read:

AB133-SSA1-SA1,362,17 196.795 (6m) (e) Contributor public utility affiliates. 1. The eligible assets of a nonutility affiliate in a holding company system that includes each of the contributor public utility affiliates in the holding company system shall not be included in the sum of the assets of the public utility affiliates under par. (b) 1. a., b. or c. and shall not be included in the nonutility affiliate's total assets under par. (b) 2. a.

AB133-SSA1-SA1,362,19 2. For purposes of subd. 1., all of the assets of a nonutility affiliate shall be considered eligible assets if each of the following is satisfied:

AB133-SSA1-SA1,362,22 a. The bylaws of the nonutility affiliate or a resolution adopted by its board of directors specifies that the business of the nonutility affiliate is limited to activities involving eligible assets.

AB133-SSA1-SA1,362,23 b. Substantially all of the assets of the nonutility affiliate are eligible assets.

AB133-SSA1-SA1,363,4 3. The net book value of transmission facility assets that a contributor public utility affiliate has contributed to a transmission company under s. 196.485 (5) (b) shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not contributed the assets.

AB133-SSA1-SA1,363,11 4. The net book value of generation assets that a contributor public utility affiliate has transferred to a person that is not affiliated with the public utility affiliate pursuant to the order of the commission, a court or a federal regulatory agency shall be included in the sum of the assets of the public utility affiliate under par. (b) 1. a., b. and c. In determining net book value under this subdivision, accumulated depreciation shall be calculated as if the contributor public utility affiliate had not transferred the assets.

AB133-SSA1-SA1, s. 2335yt Section 2335yt. 196.795 (11) (b) of the statutes is amended to read:

AB133-SSA1-SA1,363,23 196.795 (11) (b) This section shall be deemed to legalize and confirm the formation, prior to November 28, 1985, of any holding company, which is not itself a public utility, and shall be deemed to legalize and confirm the operations and issuances of securities of the holding company, except that nothing in this section shall be deemed to prevent the commission from imposing reasonable terms, limitations or conditions on any holding company which are consistent with the requirements of sub. (5) (pm) (6m) (c) or (d) or which are consistent with and necessary to satisfy the requirements of sub. (5) (b) to (o) and (q) to (s) or which relate to future investments by the holding company unless the holding company owns, operates, manages or controls a telecommunications utility and does not also own, operate, manage or control a public utility which is not a telecommunications utility.

AB133-SSA1-SA1, s. 2335yu Section 2335yu. 196.795 (11) (c) of the statutes is created to read:

AB133-SSA1-SA1,364,9 196.795 (11) (c) The commission may not impose upon a holding company the formation of which is considered to be legalized and confirmed under par. (b) any term, limitation or condition under par. (b) that establishes the sum of the holding company's nonutility affiliate assets at less than 25% of the sum of the holding company's utility affiliate assets. For purposes of this paragraph, any term, limitation or condition on nonutility affiliate assets shall not apply to the ownership, operation, management or control of any eligible asset, as defined under sub. (6m) (a) 2., or an asset that is used for manufacturing, distributing or selling swimming pools or spas.

AB133-SSA1-SA1, s. 2335z Section 2335z. 196.807 of the statutes is created to read:

AB133-SSA1-SA1,364,12 196.807 Energy affiliate and utility employes. (1) Definitions. In this section:

AB133-SSA1-SA1,364,14 (a) "Affiliate or utility" means a nonutility affiliate, a holding company system or an electric utility, as defined in s. 196.491 (1) (d).

AB133-SSA1-SA1,364,17 (b) "Energy unit" means a unit in this state that is engaged in activities related to the production, generation, transmission or distribution of electricity, gas or steam or the recovery of energy from waste materials.

AB133-SSA1-SA1,364,18 (c) "Holding company system" has the meaning given in s. 196.795 (1) (i).

AB133-SSA1-SA1,364,19 (d) "Nonutility affiliate" has the meaning given in s. 196.795 (1) (j).

AB133-SSA1-SA1,364,20 (e) "Public utility affiliate" has the meaning given in s. 196.795 (1) (L).

AB133-SSA1-SA1,364,22 (f) "Sell an energy unit" means to sell, offer by lease, or otherwise transfer ownership or control of the energy unit.

AB133-SSA1-SA1,364,24 (g) "Unit" means a division, department or other operational business unit of an affiliate or utility.

AB133-SSA1-SA1,365,5 (2) Offer of employment. (a) Except as provided in par. (b), a person may not sell an energy unit unless the terms of the transfer require the person to which the energy unit is transferred to offer employment to the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer and who are necessary for the operation and maintenance of the energy unit.

AB133-SSA1-SA1,365,9 (b) A public utility affiliate may not sell an energy unit to a nonutility affiliate in the same holding company system unless the terms of the transfer require the nonutility affiliate to offer employment to all of the nonsupervisory employes who are employed with the energy unit immediately prior to the transfer.

AB133-SSA1-SA1,365,12 (3) Employment terms and conditions. (a) Except as provided in par. (b), the employment that is offered under sub. (2) shall satisfy each of the following during the 30-month period beginning immediately after the transfer:

AB133-SSA1-SA1,365,14 1. Wage rates shall be no less than the wage rates in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,16 2. Fringe benefits shall be substantially equivalent to the fringe benefits in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,19 3. Terms and conditions of employment, other than wage rates and fringe benefits, shall be substantially equivalent to the terms and conditions in effect immediately prior to the transfer.

AB133-SSA1-SA1,365,21 (b) A collective bargaining agreement may modify or waive a requirement specified in par. (a).

AB133-SSA1-SA1,365,24 (4) Commission approval. Except for a cooperative association, as defined in s. 196.491 (1) (bm), no person may sell an energy unit unless the commission determines that the person has satisfied subs. (2) and (3).".

AB133-SSA1-SA1,366,1 974. Page 1186, line 9: after that line insert:

AB133-SSA1-SA1,366,3 " Section 2337m. Subchapter II of chapter 196 [precedes 196.991] of the statutes is created to read:

AB133-SSA1-SA1,366,4 Chapter 196

AB133-SSA1-SA1,366,6 Subchapter II Hospital rate price caps

AB133-SSA1-SA1,366,7 196.991 Definitions. In this subchapter:

AB133-SSA1-SA1,366,8 (1) "Commission" means the public service commission.

AB133-SSA1-SA1,366,9 (2) "Consumer price index" has the meaning given in s. 16.004 (8) (e) 1.

AB133-SSA1-SA1,366,11 (3) "Hospital" has the meaning given in s. 50.33 (2), except that "hospital" does not include a center for the developmentally disabled, as defined in s. 51.01 (3).

AB133-SSA1-SA1,366,14 (3m) "Price cap" means the maximum rate that may be charged for a service and includes any allowable increases in the maximum rate that are based on increases in the consumer price index.

AB133-SSA1-SA1,366,17 (4) "Rates" means individual charges of a hospital for the services that it provides or, if authorized under s. 196.993, the aggregate charges based on case mix measurements.

AB133-SSA1-SA1,366,20 196.992 Hospital rate price caps. (1) The commission shall promulgate rules that establish price caps for hospital rates. The commission shall consider each of the following in promulgating rules under this subsection:

AB133-SSA1-SA1,366,22 (a) The need to reduce the rate of hospital cost increases while preserving the quality of health care in all parts of the state.

AB133-SSA1-SA1,366,24 (b) A variety of cost-related trend factors based on nationally or regionally recognized economic models.

AB133-SSA1-SA1,367,1 (c) The past budget and rate experiences of hospitals in this state.

AB133-SSA1-SA1,367,8 (2) Rules promulgated under sub. (1) shall include requirements and procedures for hospitals to provide the commission with information that the commission determines is necessary to carry out its duties under this subchapter and for hospitals to notify the commission and patients of rates charged and any proposed increases or decreases in rates. The rules shall also include requirements and procedures for the commission to regularly review and, if necessary, revise the price caps established in the rules promulgated under sub. (1).

AB133-SSA1-SA1,367,10 (3) Rules promulgated under sub. (1) may include requirements and procedures for each of the following:

AB133-SSA1-SA1,367,13 (a) Exceptions from price caps for rural or teaching hospitals if the commission determines that such hospitals are subject to special circumstances that warrant an exception.

AB133-SSA1-SA1,367,16 (b) A uniform system for hospitals to make reports to the commission if the commission determines that such a system is necessary for the commission to carry out its duties under this subchapter.

AB133-SSA1-SA1,367,23 196.993 Case mix measurements. The commission may promulgate rules establishing a system that defines rates as aggregate charges based on case mix measurements if the commission submits its proposed system to the joint committee on finance under s. 13.10, receives that committee's approval and holds a public hearing prior to promulgating its rules. Such a system may not take effect prior to January 1, 2001, shall be consistent with the standard under s. 196.992 (1) (a) and shall ensure quality of care at a reasonable cost to patients.

AB133-SSA1-SA1,367,25 196.994 Commission prohibitions. In carrying out its duties under this subchapter, the commission may not do any of the following:

AB133-SSA1-SA1,368,2 (a) Interfere directly in the personal or decision-making relationships between a patient and the patient's physician.

AB133-SSA1-SA1,368,6 (b) Restrict the freedom of patients to receive care at a hospital consistent with their religious preferences or request a hospital that is affiliated with a religious group to act in a manner contrary to the mission and philosophy of the religious group.

AB133-SSA1-SA1,368,9 (c) Restrict directly the freedom of hospitals to exercise management decisions in complying with the price caps established in rules promulgated under s. 196.992 (1).

AB133-SSA1-SA1,368,11 (d) Require the submission of unrelated financial data from religious groups affiliated with a hospital.

AB133-SSA1-SA1,368,17 196.995 Enforcement. (1) The commission may seek a judicial remedy to enforce compliance with any requirement of this subchapter or with any rule or order of the commission under this subchapter if it first notifies the hospital and provides the hospital a reasonable time to correct a violation. The commission shall commence any action under this subsection in the circuit court for the county in which the hospital is located.

AB133-SSA1-SA1,368,21 (2) Any court that finds an intentional failure to comply with a price cap established in rules promulgated under s. 196.992 (1) may impose a forfeiture of up to $5,000. Each week that a hospital continues its intentional failure to comply with the price cap constitutes a separate violation.

AB133-SSA1-SA1,368,24 (3) Any court with jurisdiction over an action brought under this section may adopt remedies that it finds necessary to enforce compliance. Remedies under this section apply notwithstanding the existence or pursuit of any other remedy.

AB133-SSA1-SA1,368,25 196.996 Assessments. (1) In this section:

AB133-SSA1-SA1,369,3 (a) "Commercial insurance" includes a group or individual disability insurance policy, as defined in s. 632.895 (1) (a), an employer's self-insured health care plan and worker's compensation.

AB133-SSA1-SA1,369,6 (b) "Deduction" means the portion of a charge that was incurred by a patient but was not received from 3rd-party payers or governmental or private payment. "Deduction" includes charity care but does not include bad debt.

AB133-SSA1-SA1,369,8 (c) "Expense" means the cost of operation, including bad debt, that is charged to a hospital during the hospital's fiscal year.