Amendment SA1-SSA1-SB45

SB45-SSA1-SA1, s. 2165x Section 2165x. 125.72 of the statutes is created to read:

SB45-SSA1-SA1,283,3 125.72 Relationships between wholesalers and suppliers of intoxicating liquor. (1e) Legislative findings. The legislature finds that the 3-tier system for distributing intoxicating liquor to the public has existed in Wisconsin for over 60 years and continues to be necessary to promote the public health, safety and welfare; that the 3-tier system was established, among other reasons, to prevent suppliers from controlling pricing and distribution in a manner that harms the interests of the citizens of this state; that a stable and healthy middle tier of the 3-tier system, the wholesaler, is integral to the 3-tier system because the middle tier prevents supplier control of pricing and distribution and provides an efficient and effective means of tax collection; that significant consolidation of market power has occurred at the supplier level; that the number of wholesalers in this state has declined significantly between 1979 and 1999, increasing the risk of supplier control of pricing and distribution of intoxicating liquor; and that this section is necessary to maintain a stable and healthy middle tier. The legislature further finds that relationships between intoxicating liquor wholesalers and suppliers have been subject to state regulation since the enactment of the 21st Amendment to the U.S. Constitution and that the parties to those relationships expect changes in state legislation regarding those relationships.

SB45-SSA1-SA1,283,9 (1m) Applicability. (a) The effect of this section may not be varied by contract or agreement. Any contract or agreement purporting to do so is void and unenforceable to that extent only. Provisions of a relationship that prevent a wholesaler, through choice of law or forum provisions, from bringing an action or filing a notice of contest in this state under this section are void and unenforceable to that extent only.

SB45-SSA1-SA1,283,14 (b) This section applies to all relationships, regardless of when the relationships were entered into, except that this section does not apply to a relationship in which the volume of the business done by a wholesaler with a supplier and the supplier's affiliates does not exceed 5% of the wholesaler's total business volume.

SB45-SSA1-SA1,283,15 (1s) Definitions. In this section:

SB45-SSA1-SA1,283,16 (a) "Altered product" means an existing product that is all of the following:

SB45-SSA1-SA1,283,18 1. Altered by age, by alcohol content, by blend mixture, by flavor or in some other way.

SB45-SSA1-SA1,283,20 2. Principally identified by a trademark, trade name, logotype or other commercial symbol used to identify an existing product.

SB45-SSA1-SA1,283,23 (am) "Existing product" means intoxicating liquor that is distributed in the United States before or on the effective date of this paragraph .... [revisor inserts date].

SB45-SSA1-SA1,283,25 (ar) "Geographic area" means the area in which a wholesaler is both authorized to sell intoxicating liquor under a relationship and has sold intoxicating liquor.

SB45-SSA1-SA1,284,1 (b) "Good cause" means any of the following:

SB45-SSA1-SA1,284,6 1. Failure by a wholesaler to comply substantially with essential and reasonable requirements imposed upon the wholesaler by the supplier, or sought to be imposed by the supplier, which requirements are not discriminatory as compared with requirements imposed on other similarly situated wholesalers either by their terms or in the manner of their enforcement.

SB45-SSA1-SA1,284,7 2. Bad faith by the wholesaler in carrying out the terms of the relationship.

SB45-SSA1-SA1,284,10 (c) "Goodwill" includes use of a trademark, trade name, logotype or other commercial symbol, and use of a variation of a trademark, trade name, logotype, advertisement or other commercial symbol.

SB45-SSA1-SA1,284,12 (cm) "Intoxicating liquor" has the meaning given in s. 125.02 (8), but does not include wine.

SB45-SSA1-SA1,284,13 (d) "New product" means intoxicating liquor that is all of the following:

SB45-SSA1-SA1,284,15 1. First distributed in the United States after the effective date of this subdivision .... [revisor inserts date].

SB45-SSA1-SA1,284,16 2. Not an altered product.

SB45-SSA1-SA1,284,19 (e) "Relationship" means a written or oral contract or agreement, express or implied, between a supplier and a wholesaler that grants the wholesaler the right to purchase intoxicating liquor from the supplier for resale in this state.

SB45-SSA1-SA1,284,21 (f) "Supplier" means any person, other than a wholesaler, who sells intoxicating liquor to a wholesaler.

SB45-SSA1-SA1,284,23 (g) "Transferee" means a person who acquires any asset or activity of a supplier's business and who uses the goodwill associated with the supplier's goods.

SB45-SSA1-SA1,284,24 (2) Change of relationship. (a) A supplier may not do any of the following:

SB45-SSA1-SA1,285,3 1. Terminate, cancel, fail to renew or substantially change a relationship without good cause. The supplier bears the burden of proving good cause and that the change is not substantial.

SB45-SSA1-SA1,285,6 2. Substantially change the competitive circumstances of a wholesaler's business without good cause. The supplier bears the burden of proving good cause and that the change is not substantial.

SB45-SSA1-SA1,285,10 3. Appoint more than one wholesaler to resell an existing product in a geographic area in which there was only one wholesaler reselling that existing product in that geographic area in the 12 months preceding the effective date of this subdivision .... [revisor inserts date].

SB45-SSA1-SA1,285,12 4. Except as provided in par. (b), refuse to sell an altered product or new product to a wholesaler who has entered into a relationship with the supplier.

SB45-SSA1-SA1,285,16 (b) A supplier who has relationships with more than one wholesaler in the same geographic area shall offer an altered product only to a wholesaler who previously resold the existing product principally identified by the same trademark, trade name, logotype or other commercial symbol used to identify the altered product.

SB45-SSA1-SA1,285,20 (c) A change in the ownership or management of a wholesaler or of a wholesaler's business is not good cause if the changed ownership or management meets the supplier's reasonable and material qualifications for wholesaler applicants in effect at the time of the change.

SB45-SSA1-SA1,286,6 (3) Notice of termination or change in relationship. (a) 1. Except as provided in subds. 2. and 3., a supplier shall provide a wholesaler at least 90 days' prior written notice of termination, cancellation, nonrenewal or substantial change in the relationship or a substantial change in the competitive circumstances of the wholesaler's business. The notice shall be given by certified mail or personal service to the wholesaler and to the secretary of the department. The notice shall state all of the supplier's reasons for terminating, canceling, not renewing or substantially changing the relationship or substantially changing in the competitive circumstances of the wholesaler's business. The wholesaler shall have 60 days after receiving the notice in which to correct any claimed deficiency. If the wholesaler corrects the deficiency within 60 days after receiving the notice, the notice is void.

SB45-SSA1-SA1,286,8 2. If the reason is nonpayment of sums owed, the wholesaler shall have only 10 days to correct the deficiency.

SB45-SSA1-SA1,286,11 3. No notice is required under this subsection for the termination, cancellation, nonrenewal or substantial change of a relationship caused by an assignment for the benefit of creditors or bankruptcy.

SB45-SSA1-SA1,286,20 (b) 1. Within the time period for remedying any claimed deficiency, the wholesaler may file a written request with the division of hearings and appeals in the department of administration for a hearing and serve the supplier and the secretary of revenue by certified mail or in person, with a notice of the contested action. Service of notice stays any action proposed by the supplier in the notice provided under par. (a) 1. If the supplier files a motion with the division of hearings and appeals to allow the action to proceed, the division of hearings and appeals shall, within 20 days after receiving that notice, hold a hearing to determine whether the action should proceed.

SB45-SSA1-SA1,286,24 2. The division of hearings and appeals shall conduct a contested case hearing on the matter, as provided in ch. 227, within 180 days after the filing of a notice of contest and shall determine whether the supplier has met the requirements of this subsection and sub. (2).

SB45-SSA1-SA1,287,12 3. If the division of hearings and appeals, after a hearing, determines the supplier has failed to comply with this subsection or sub. (2), the relationship between the supplier and the wholesaler is still in effect. The department may revoke or refuse to renew the out-of-state shippers' permit of a supplier that fails to comply with the terms of the relationship or may refuse to grant an out-of-state shippers' permit to such a supplier. If the division of hearings and appeals, after a hearing, determines that a transferee has failed to comply with this subsection or sub. (2), the transferee shall comply with the terms of the relationship between the supplier and the wholesaler. The department may revoke or refuse to renew the out-of-state shippers' permit of a transferee that fails to comply with the terms of the relationship, or may refuse to grant an out-of-state shippers' permit to such a transferee.

SB45-SSA1-SA1,287,16 3m. If the wholesaler prevails at the hearing, the wholesaler shall be awarded its actual costs incurred in the hearing, including reasonable attorney fees. The losing party shall pay to the division of hearings and appeals the costs of the hearing, as determined under s. 227.43 (3) (f).

SB45-SSA1-SA1,287,19 4. Any person aggrieved by a decision of the division of hearings and appeals may seek judicial review under ss. 227.53 to 227.58 in the circuit court in the county in which the wholesaler's premises is located.

SB45-SSA1-SA1,287,21 (4) Liability of transferee. A transferee of a supplier's business shall comply with the requirements under subs. (2) and (3).

SB45-SSA1-SA1,287,25 (5) Action for damages and injunctive relief. A wholesaler may bring an action to enjoin any violation of sub. (2), (3) or (4) to compel compliance with those subsections, and in the same action may recover the damages, together with costs including reasonable, actual attorney fees, notwithstanding s. 814.04 (1).

SB45-SSA1-SA1,288,2 (6) Other rights, remedies. This section does not limit any other right or remedy provided by law.".

SB45-SSA1-SA1,288,3 935. Page 1140, line 6: after that line insert:

SB45-SSA1-SA1,288,4 " Section 2171p. 139.32 (5) of the statutes is amended to read:

SB45-SSA1-SA1,288,6 139.32 (5) Manufacturers and distributors having a permit from the secretary shall receive a discount of 1.6% 2% of the tax.".

SB45-SSA1-SA1,288,7 936. Page 1140, line 7: delete lines 7 to 24.

SB45-SSA1-SA1,288,8 937. Page 1143, line 13: delete "a portion" and substitute "70%".

SB45-SSA1-SA1,288,9 938. Page 1144, line 1: delete lines 1 and 2.

SB45-SSA1-SA1,288,11 939. Page 1144, line 6: delete lines 6 to 9 and substitute "tax imposed under s. 139.76 (1)".

SB45-SSA1-SA1,288,13 940. Page 1144, line 24: delete the material beginning with that line and ending with page 1145, line 15.

SB45-SSA1-SA1,288,14 941. Page 1146, line 1: delete lines 1 to 9.

SB45-SSA1-SA1,288,16 942. Page 1146, line 19: delete the material beginning with that line and ending with page 1147, line 9.

SB45-SSA1-SA1,288,17 943. Page 1148, line 13: delete lines 13 to 19.

SB45-SSA1-SA1,288,19 944. Page 1149, line 9: delete the material beginning with that line and ending with page 1150, line 5.

SB45-SSA1-SA1,288,20 945. Page 1155, line 13: after that line insert:

SB45-SSA1-SA1,288,21 " Section 2246m. 146.37 (1g) of the statutes is amended to read:

SB45-SSA1-SA1,289,14 146.37 (1g) Except as provided in s. 153.85, no person acting in good faith who participates in the review or evaluation of the services of health care providers or facilities or the charges for such services conducted in connection with any program organized and operated to help improve the quality of health care, to avoid improper utilization of the services of health care providers or facilities or to determine the reasonable charges for such services, or who participates in the obtaining of health care information under ch. 153, or who participates in hospital rate price cap activities under subch. II of ch. 196, is liable for any civil damages as a result of any act or omission by such person in the course of such review or evaluation. Acts and omissions to which this subsection applies include, but are not limited to, acts or omissions by peer review committees or hospital governing bodies in censuring, reprimanding, limiting or revoking hospital staff privileges or notifying the medical examining board or podiatrists affiliated credentialing board under s. 50.36 or taking any other disciplinary action against a health care provider or facility and acts or omissions by a medical director, as defined in s. 146.50 (1) (j), in reviewing the performance of emergency medical technicians or ambulance service providers.".

SB45-SSA1-SA1,289,15 946. Page 1158, line 11: after that line insert:

SB45-SSA1-SA1,289,16 " Section 2251gm. 146.82 (1) of the statutes is amended to read:

SB45-SSA1-SA1,289,22 146.82 (1) Confidentiality. All patient health care records shall remain confidential. Patient health care records may be released only to the persons designated in this section or to other persons with the informed consent of the patient or of a person authorized by the patient. This subsection does not prohibit reports made in compliance with s. 146.995, 253.12 (2) or 979.01 or testimony authorized under s. 905.04 (4) (h).".

SB45-SSA1-SA1,289,23 947. Page 1158, line 11: after that line insert:

SB45-SSA1-SA1,289,24 " Section 2251r. 146.84 (3) of the statutes is amended to read:

SB45-SSA1-SA1,290,4 146.84 (3) Discipline of employes. Any person employed by the state, or any political subdivision of the state who violates s. 146.82 or 146.83 , except a health care provider that negligently violates s. 153.50 (6) (c), may be discharged or suspended without pay.".

SB45-SSA1-SA1,290,5 948. Page 1158, line 11: after that line insert:

SB45-SSA1-SA1,290,6 " Section 2252g. 146.83 (1) (b) of the statutes is amended to read:

SB45-SSA1-SA1,290,10 146.83 (1) (b) Receive a copy of the patient's health care records, whether certified or not, upon payment of reasonable an approximation of actual costs. In this paragraph, "approximation of actual costs" means, at a maximum, the fees that are prescribed by the department by rule under s. 908.03 (6m) (d).

SB45-SSA1-SA1, s. 2252h Section 2252h. 146.83 (3m) of the statutes is created to read:

SB45-SSA1-SA1,290,16 146.83 (3m) If a health care provider provides a copy of a patient health care record after 30 days after receipt of a statement of informed consent for the release of the copy, the health care provider, notwithstanding sub. (1) (b) and s. 908.03 (6m) (d), may collect as payment no more than 25% of the approximation of actual costs, as specified under sub. (1) (b).".

SB45-SSA1-SA1,290,18 949. Page 1163, line 15: delete the material beginning with that line and ending with page 1165, line 8 and substitute:

SB45-SSA1-SA1,290,19 " Section 2262e. 149.143 (1) (b) (intro.) of the statutes is repealed.

SB45-SSA1-SA1, s. 2262m Section 2262m. 149.143 (1) (b) 1. (intro.) of the statutes is repealed.

SB45-SSA1-SA1, s. 2262r Section 2262r. 149.143 (1) (b) 1. a. of the statutes is renumbered 149.143 (1) (b) and amended to read:

SB45-SSA1-SA1,291,6 149.143 (1) (b) First, Next from premiums from eligible persons with coverage under s. 149.14 set, except as reduced under sub. (2m), at 150% of the rate that a standard risk would be charged under an individual policy providing substantially the same coverage and deductibles as are provided under the plan, including amounts received for premium and deductible subsidies under s. 149.144 and under the transfer to the fund from the appropriation account under ss. s. 20.435 (5) (4) (ah) and 149.144, and from premiums collected from eligible persons with coverage under s. 149.146 set in accordance with s. 149.146 (2) (b).

SB45-SSA1-SA1, s. 2263b Section 2263b. 149.143 (1) (b) 1. b. of the statutes is repealed.

SB45-SSA1-SA1, s. 2263e Section 2263e. 149.143 (1) (b) 1. c. of the statutes is repealed.

SB45-SSA1-SA1, s. 2263m Section 2263m. 149.143 (1) (b) 1. d. of the statutes is repealed.

SB45-SSA1-SA1, s. 2263r Section 2263r. 149.143 (1) (b) 2. of the statutes is renumbered 149.143 (1) (c) and 149.143 (1) (c) (intro.) and 2., as renumbered, are amended to read:

SB45-SSA1-SA1,291,12 149.143 (1) (c) (intro.) A total of 40% The remainder as follows:

SB45-SSA1-SA1,291,14 2. Fifty percent from adjustments to provider payment rates, excluding adjustments to those rates under ss. s. 149.144 and 149.15 (3) (e).

SB45-SSA1-SA1, s. 2264b Section 2264b. 149.143 (2) (a) 1. of the statutes is repealed.

SB45-SSA1-SA1, s. 2264e Section 2264e. 149.143 (2) (a) 2. of the statutes is amended to read:

SB45-SSA1-SA1,291,22 149.143 (2) (a) 2. After making the determinations under subd. 1., by By rule set premium rates for the new plan year, including the rates under s. 149.146 (2) (b), in the manner specified in sub. (1) (b) 1. a. and c. and such that a rate for coverage under s. 149.14 is not less than 150% nor more than 200% of the rate that a standard risk would be charged under an individual policy providing substantially the same coverage and deductibles as are provided under the plan.

SB45-SSA1-SA1, s. 2264m Section 2264m. 149.143 (2) (a) 3. of the statutes is amended to read:

SB45-SSA1-SA1,292,2 149.143 (2) (a) 3. By rule set the total insurer assessments under s. 149.13 for the new plan year by estimating and setting the assessments at the amount necessary to equal the amounts specified in sub. (1) (b) 1. d. and 2. a. (c) 1. and notify the commissioner of the amount.

SB45-SSA1-SA1, s. 2264r Section 2264r. 149.143 (2) (a) 4. of the statutes is amended to read:

SB45-SSA1-SA1,292,7 149.143 (2) (a) 4. By the same rule as under subd. 3. adjust the provider payment rate for the new plan year by estimating and setting the rate at the level necessary to equal the amounts specified in sub. (1) (b) 1. d. and 2. b. (c) 2. and as provided in s. 149.145.

SB45-SSA1-SA1, s. 2265b Section 2265b. 149.143 (2) (b) of the statutes is amended to read:

SB45-SSA1-SA1,292,15 149.143 (2) (b) In setting the premium rates under par. (a) 2., the insurer assessment amount under par. (a) 3. and the provider payment rate under par. (a) 4. for the new plan year, the department shall include any increase or decrease necessary to reflect the amount, if any, by which the rates and amount and rate set under par. (a) for the current plan year differed from the rates and amount and rate which would have equaled the amounts specified in sub. (1) (b) (c) in the current plan year.".

SB45-SSA1-SA1,292,16 950. Page 1165, line 15: delete "60% of".

SB45-SSA1-SA1,292,17 951. Page 1165, line 20: delete "(1) (b) 1." and substitute "(1) (b).".

SB45-SSA1-SA1,292,18 952. Page 1165, line 21: delete lines 21 to 24.

SB45-SSA1-SA1,292,19 953. Page 1166, line 1: delete lines 1 to 8 and substitute: