4. Payment of plan costs. Current law sets out a complex formula for payment
of the administrative and operating expenses of HIRSP. In general, premiums must
be set at a rate that pays for 60 percent of costs and may not exceed 200 percent of
the rate a standard risk would be charged for the same coverage and deductibles.
Insurer assessments and provider payment discounts must each pay for half of the
remaining 40 percent of costs. The substitute amendment eliminates the formula
but retains the requirements that premiums must be set at a rate to pay for 60
percent of costs, excluding premium, deductible, and copayment subsidy costs
(subsidy costs), and may not exceed 200 percent of rates applicable to standard risks,
that insurer assessments must be set at an amount to cover 20 percent of costs,
excluding subsidy costs, and that provider payment discounts must be set at a rate
to cover 20 percent of costs, excluding subsidy costs. Subsidy costs are to be paid first
from any federal high risk pool grant funds that are received by OCI, and the
remainder of subsidy costs are paid equally through insurer assessments and
provider payment discounts. If federal high risk pool grant funds received in a year
exceed subsidy costs in that year, the excess federal funds must be used to pay the
administrative and operating costs before premiums, insurer assessments, and
provider discounts are applied to the costs.
5. Subsidies. Under current law, generally, persons with coverage under
HIRSP who have household incomes below $25,000 receive premium and deductible
subsidies and may receive prescription drug copayment subsidies. For a person who
is eligible for a subsidy, the statutes set out, on the basis of the person's household
income category, the specific deductible amount that the person must pay and the
premium rate that the person must pay as a percentage of the rate that a standard
risk would be charged for the same coverage and deductibles. The substitute
amendment retains the subsidies and makes no changes to the categories of persons
who are eligible for subsidies and no changes to the standard risk rates that are the
basis for premium reductions. Beginning on January 1, 2007, however, the specific
reduced deductible amounts are eliminated and the HIRSP Authority is directed to
establish and provide deductible subsidies for those persons paying reduced
deductibles under current law and is authorized to provide prescription drug
copayment subsidies for those same persons.
Health Care Tax Credit Program
The federal Trade Adjustment Assistance Reform Act of 2002 (TAA) provides,
among other benefits related to employment, a federal income tax credit for up to 65
percent of the amount of the premium paid by eligible persons for coverage for
themselves and their dependents under qualified health insurance. Eligible persons
are those who are eligible for TAA employment-related benefits because they have
lost their jobs or experienced reduced work hours and wages because of increased
imports and those who are at least 55 years of age and receiving benefits from the
Pension Benefit Guaranty Corporation. The substitute amendment requires the
HIRSP Authority to design and administer, as long as the federal income tax credit
is available, a plan of health care coverage that satisfies the requirements for
qualified health insurance for coverage of persons who are eligible for the tax credit.
Assessment Credits
The substitute amendment creates an income and franchise tax credit and a
license fee credit for insurers that pay assessments to OCI. The amount of the credit
is equal to a percentage of the amount of the assessment that the insurer paid in the
calendar year in which the insurer's taxable year begins. The Department of
Revenue and OCI determine the percentage of the amount that each insurer may
claim in each taxable year so that the total amount of the credits awarded to all
insurers in each fiscal year is approximately $5,000,000. Although the credits apply
to taxable years beginning after December 31, 2005, the credits awarded for the 2006
and 2007 taxable years may not be claimed until taxable years beginning after
December 31, 2007.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB451-SSA1,7,72
1.12
(1) (b) "State agency" means an office, department, agency, institution of
3higher education, the legislature, a legislative service agency, the courts, a judicial
4branch agency, an association, society
, or other body in state government
which that 5is created or authorized to be created by the constitution or by law, for which
6appropriations are made by law
, excluding the Health Insurance Risk-Sharing Plan
7Authority.
SB451-SSA1,7,139
13.172
(1) In this section, "agency" means an office, department, agency,
10institution of higher education, association, society
, or other body in state
11government created or authorized to be created by the constitution or any law,
which 12that is entitled to expend moneys appropriated by law, including the legislature and
13the courts, and any authority created in
subch. III of ch. 149 or in ch. 231, 233
, or 234.
SB451-SSA1,7,1815
13.62
(2) "Agency" means any board, commission, department, office, society,
16institution of higher education, council
, or committee in the state government, or any
17authority created in
subch. III of ch. 149 or in ch. 231, 232, 233, 234, or 237, except
18that the term does not include a council or committee of the legislature.
SB451-SSA1,8,1020
13.94
(1) (b) Audit the records of every state department, board, commission,
21independent agency
, or authority
, excluding the Health Insurance Risk-Sharing
22Plan Authority, at least once each 5 years and audit the records of other departments
23as defined in sub. (4) when the state auditor deems it advisable or when he or she is
24so directed and, in conjunction therewith, reconcile the records of the department
25audited with those of the department of administration. Audits of the records of a
1county, city, village, town
, or school district may be performed only as provided in par.
2(m). Within 30 days after completion of any such audit, the bureau shall file with the
3chief clerk of each house of the legislature, the governor, the department of
4administration, the legislative reference bureau, the joint committee on finance, the
5legislative fiscal bureau
, and the department audited, a detailed report thereof,
6including its recommendations for improvement and efficiency and including
7specific instances, if any, of illegal or improper expenditures. The chief clerks shall
8distribute the report to the joint legislative audit committee, the appropriate
9standing committees of the legislature
, and the joint committee on legislative
10organization.
SB451-SSA1, s. 5
11Section
5. 13.94 (1) (dh) of the statutes is created to read:
SB451-SSA1,8,1412
13.94
(1) (dh) Notwithstanding par. (b), annually conduct a financial audit of
13the Health Insurance Risk-Sharing Plan under subch. II of ch. 149 and file copies
14of each audit report under this paragraph with the distributees specified in par. (b).
SB451-SSA1,9,216
13.94
(1) (g) Require each state department, board, commission, independent
17agency
, or authority
, excluding the Health Insurance Risk-Sharing Plan Authority,
18to file with the bureau on or before September 1 of each year a report on all
19receivables due the state as of the preceding June 30 which were occasioned by
20activities of the reporting unit. The report may also be required of other
21departments, except counties, cities, villages, towns
, and school districts. The report
22shall show the aggregate amount of such receivables according to fiscal year of origin
23and collections thereon during the fiscal year preceding the report. The state auditor
24may require any department to file with the bureau a detailed list of the receivables
1comprising the aggregate amounts shown on the reports prescribed by this
2paragraph.
SB451-SSA1,9,16
513.95 Legislative fiscal bureau. (intro.) There is created a bureau to be
6known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau
7shall be strictly nonpartisan and shall at all times observe the confidential nature
8of the research requests received by it; however, with the prior approval of the
9requester in each instance, the bureau may duplicate the results of its research for
10distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's
11designated employees shall at all times, with or without notice, have access to all
12state agencies, the University of Wisconsin Hospitals and Clinics Authority,
the
13Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational
14System Authority
, and to any books, records
, or other documents maintained by such
15agencies or authorities and relating to their expenditures, revenues, operations
, and
16structure.
SB451-SSA1,9,2218
16.002
(2) "Departments" means constitutional offices, departments
, and
19independent agencies and includes all societies, associations
, and other agencies of
20state government for which appropriations are made by law, but not including
21authorities created in
subch. III of ch. 149 and in chs. 231, 232, 233, 234, 235, and
22237.
SB451-SSA1,9,2524
16.004
(4) Freedom of access. The secretary and such employees of the
25department as the secretary designates may enter into the offices of state agencies
1and authorities created under
subch. III of ch. 149 and under chs. 231, 233, 234, and
2237, and may examine their books and accounts and any other matter
which that in
3the secretary's judgment should be examined and may interrogate the agency's
4employees publicly or privately relative thereto.
SB451-SSA1,10,96
16.004
(5) Agencies and employees to cooperate. All state agencies and
7authorities created under
subch. III of ch. 149 and under chs. 231, 233, 234, and 237,
8and their officers and employees, shall cooperate with the secretary and shall comply
9with every request of the secretary relating to his or her functions.
SB451-SSA1,10,1711
16.004
(12) (a) In this subsection, "state agency" means an association,
12authority, board, department, commission, independent agency, institution, office,
13society
, or other body in state government created or authorized to be created by the
14constitution or any law, including the legislature, the office of the governor
, and the
15courts, but excluding the University of Wisconsin Hospitals and Clinics Authority
,
16the Health Insurance Risk-Sharing Plan Authority, and the Fox River Navigational
17System Authority.
SB451-SSA1,10,2419
16.045
(1) (a) "Agency" means an office, department, independent agency,
20institution of higher education, association, society
, or other body in state
21government created or authorized to be created by the constitution or any law,
which 22that is entitled to expend moneys appropriated by law, including the legislature and
23the courts, but not including an authority created in
subch. III of ch. 149 or in ch. 231,
24232, 233, 234, 235, or 237.
SB451-SSA1,11,3
116.15
(1) (ab) "Authority" has the meaning given under s. 16.70 (2), but
2excludes the University of Wisconsin Hospitals and Clinics Authority
and the Health
3Insurance Risk-Sharing Plan Authority.
SB451-SSA1,11,65
16.41
(4) In this section, "authority" means a body created under
subch. III of
6ch. 149 or under ch. 231, 233, 234, or 237.
SB451-SSA1,11,138
16.417
(1) (a) "Agency" means an office, department, independent agency,
9institution of higher education, association, society
, or other body in state
10government created or authorized to be created by the constitution or any law,
which 11that is entitled to expend moneys appropriated by law, including the legislature and
12the courts, but not including an authority
or the body created under subch. III of ch.
13149.
SB451-SSA1,11,2415
16.52
(7) Petty cash account. With the approval of the secretary, each agency
16which that is authorized to maintain a contingent fund under s. 20.920 may establish
17a petty cash account from its contingent fund. The procedure for operation and
18maintenance of petty cash accounts and the character of expenditures therefrom
19shall be prescribed by the secretary. In this subsection, "agency" means an office,
20department, independent agency, institution of higher education, association,
21society
, or other body in state government created or authorized to be created by the
22constitution or any law,
which that is entitled to expend moneys appropriated by law,
23including the legislature and the courts, but not including an authority created in
24subch. III of ch. 149 or in ch. 231, 233, 234, or 237.
SB451-SSA1,12,6
116.528
(1) (a) "Agency" means an office, department, independent agency,
2institution of higher education, association, society
, or other body in state
3government created or authorized to be created by the constitution or any law,
which 4that is entitled to expend moneys appropriated by law, including the legislature and
5the courts, but not including an authority created in
subch. III of ch. 149 or in ch. 231,
6233, 234, or 237.
SB451-SSA1,12,158
16.53
(2) Improper invoices. If an agency receives an improperly completed
9invoice, the agency shall notify the sender of the invoice within 10 working days after
10it receives the invoice of the reason it is improperly completed. In this subsection,
11"agency" means an office, department, independent agency, institution of higher
12education, association, society
, or other body in state government created or
13authorized to be created by the constitution or any law,
which that is entitled to
14expend moneys appropriated by law, including the legislature and the courts, but not
15including an authority created in
subch. III of ch. 149 or in ch. 231, 233, 234, or 237.
SB451-SSA1,12,2217
16.54
(9) (a) 1. "Agency" means an office, department, independent agency,
18institution of higher education, association, society or other body in state
19government created or authorized to be created by the constitution or any law, which
20is entitled to expend moneys appropriated by law, including the legislature and the
21courts, but not including an authority created in
subch. III of ch. 149 or in ch. 231,
22233, 234, or 237.
SB451-SSA1,12,2524
16.70
(2) "Authority" means a body created under
subch. III of ch. 149 or under 25ch. 231, 232, 233, 234, 235, or 237.
SB451-SSA1, s. 21
1Section
21. 16.72 (2) (e) (intro.) of the statutes is amended to read:
SB451-SSA1,13,112
16.72
(2) (e) (intro.) In writing the specifications under this subsection, the
3department and any other designated purchasing agent under s. 16.71 (1) shall
4incorporate requirements for the purchase of products made from recycled materials
5and recovered materials if their use is technically and economically feasible. Each
6authority other than the University of Wisconsin Hospitals and Clinics Authority
7and the Health Insurance Risk-Sharing Plan Authority, in writing specifications for
8purchasing by the authority, shall incorporate requirements for the purchase of
9products made from recycled materials and recovered materials if their use is
10technically and economically feasible. The specifications shall include requirements
11for the purchase of the following materials:
SB451-SSA1,13,2213
16.72
(2) (f) In writing specifications under this subsection, the department,
14any other designated purchasing agent under s. 16.71 (1)
, and each authority other
15than the University of Wisconsin Hospitals and Clinics Authority
and the Health
16Insurance Risk-Sharing Plan Authority shall incorporate requirements relating to
17the recyclability and ultimate disposition of products and, wherever possible, shall
18write the specifications so as to minimize the amount of solid waste generated by the
19state, consistent with the priorities established under s. 287.05 (12). All
20specifications under this subsection shall discourage the purchase of single-use,
21disposable products and require, whenever practical, the purchase of multiple-use,
22durable products.
SB451-SSA1,14,1124
16.75
(1m) The department shall award each order or contract for materials,
25supplies or equipment on the basis of life cycle cost estimates, whenever such action
1is appropriate. Each authority other than the University of Wisconsin Hospitals and
2Clinics Authority
and the Health Insurance Risk-Sharing Plan Authority shall
3award each order or contract for materials, supplies or equipment on the basis of life
4cycle cost estimates, whenever such action is appropriate. The terms, conditions and
5evaluation criteria to be applied shall be incorporated in the solicitation of bids or
6proposals. The life cycle cost formula may include, but is not limited to, the
7applicable costs of energy efficiency, acquisition and conversion, money,
8transportation, warehousing and distribution, training, operation and maintenance
9and disposition or resale. The department shall prepare documents containing
10technical guidance for the development and use of life cycle cost estimates, and shall
11make the documents available to local governmental units.
SB451-SSA1,14,1913
16.75
(8) (a) 1. The department, any other designated purchasing agent under
14s. 16.71 (1), any agency making purchases under s. 16.74
, and each authority other
15than the University of Wisconsin Hospitals and Clinics Authority
and the Health
16Insurance Risk-Sharing Plan Authority shall, to the extent practicable, make
17purchasing selections using specifications developed under s. 16.72 (2) (e) to
18maximize the purchase of materials utilizing recycled materials and recovered
19materials.
SB451-SSA1,15,221
16.75
(8) (a) 2. Each agency and authority other than the University of
22Wisconsin Hospitals and Clinics Authority
and the Health Insurance Risk-Sharing
23Plan Authority shall ensure that the average recycled or recovered content of all
24paper purchased by the agency or authority measured as a proportion, by weight, of
1the fiber content of paper products purchased in a fiscal year, is not less than 40%
2of all purchased paper.
SB451-SSA1,15,84
16.75
(9) The department, any other designated purchasing agent under s.
516.71 (1), any agency making purchases under s. 16.74
, and any authority other than
6the University of Wisconsin Hospitals and Clinics Authority
and the Health
7Insurance Risk-Sharing Plan Authority shall, to the extent practicable, make
8purchasing selections using specifications prepared under s. 16.72 (2) (f).
SB451-SSA1,15,1910
16.765
(1) Contracting agencies, the University of Wisconsin Hospitals and
11Clinics Authority, the Fox River Navigational System Authority,
the Health
12Insurance Risk-Sharing Plan Authority, and the Bradley Center Sports and
13Entertainment Corporation shall include in all contracts executed by them a
14provision obligating the contractor not to discriminate against any employee or
15applicant for employment because of age, race, religion, color, handicap, sex, physical
16condition, developmental disability as defined in s. 51.01 (5), sexual orientation as
17defined in s. 111.32 (13m)
, or national origin and, except with respect to sexual
18orientation, obligating the contractor to take affirmative action to ensure equal
19employment opportunities.
SB451-SSA1,16,1121
16.765
(2) Contracting agencies, the University of Wisconsin Hospitals and
22Clinics Authority, the Fox River Navigational System Authority,
the Health
23Insurance Risk-Sharing Plan Authority, and the Bradley Center Sports and
24Entertainment Corporation shall include the following provision in every contract
25executed by them: "In connection with the performance of work under this contract,
1the contractor agrees not to discriminate against any employee or applicant for
2employment because of age, race, religion, color, handicap, sex, physical condition,
3developmental disability as defined in s. 51.01 (5), sexual orientation or national
4origin. This provision shall include, but not be limited to, the following: employment,
5upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or
6termination; rates of pay or other forms of compensation; and selection for training,
7including apprenticeship. Except with respect to sexual orientation, the contractor
8further agrees to take affirmative action to ensure equal employment opportunities.
9The contractor agrees to post in conspicuous places, available for employees and
10applicants for employment, notices to be provided by the contracting officer setting
11forth the provisions of the nondiscrimination clause".
SB451-SSA1,16,1713
16.765
(4) Contracting agencies, the University of Wisconsin Hospitals and
14Clinics Authority, the Fox River Navigational System Authority,
the Health
15Insurance Risk-Sharing Plan Authority, and the Bradley Center Sports and
16Entertainment Corporation shall take appropriate action to revise the standard
17government contract forms under this section.
SB451-SSA1,17,719
16.765
(5) The head of each contracting agency and the boards of directors of
20the University of Wisconsin Hospitals and Clinics Authority, the Fox River
21Navigational System Authority,
the Health Insurance Risk-Sharing Plan Authority, 22and the Bradley Center Sports and Entertainment Corporation shall be primarily
23responsible for obtaining compliance by any contractor with the nondiscrimination
24and affirmative action provisions prescribed by this section, according to procedures
25recommended by the department. The department shall make recommendations to
1the contracting agencies and the boards of directors of the University of Wisconsin
2Hospitals and Clinics Authority, the Fox River Navigational System Authority,
the
3Health Insurance Risk-Sharing Plan Authority, and the Bradley Center Sports and
4Entertainment Corporation for improving and making more effective the
5nondiscrimination and affirmative action provisions of contracts. The department
6shall promulgate such rules as may be necessary for the performance of its functions
7under this section.
SB451-SSA1,17,169
16.765
(6) The department may receive complaints of alleged violations of the
10nondiscrimination provisions of such contracts. The department shall investigate
11and determine whether a violation of this section has occurred. The department may
12delegate this authority to the contracting agency, the University of Wisconsin
13Hospitals and Clinics Authority, the Fox River Navigational System Authority,
the
14Health Insurance Risk-Sharing Plan Authority, or the Bradley Center Sports and
15Entertainment Corporation for processing in accordance with the department's
16procedures.
SB451-SSA1, s. 32
17Section
32. 16.765 (7) (intro.) of the statutes is amended to read:
SB451-SSA1,17,2518
16.765
(7) (intro.) When a violation of this section has been determined by the
19department, the contracting agency, the University of Wisconsin Hospitals and
20Clinics Authority, the Fox River Navigational System Authority,
the Health
21Insurance Risk-Sharing Plan Authority, or the Bradley Center Sports and
22Entertainment Corporation, the contracting agency, the University of Wisconsin
23Hospitals and Clinics Authority, the Fox River Navigational System Authority,
the
24Health Insurance Risk-Sharing Plan Authority, or the Bradley Center Sports and
25Entertainment Corporation shall:
SB451-SSA1,18,72
16.765
(7) (d) Direct the violating party to take immediate steps to prevent
3further violations of this section and to report its corrective action to the contracting
4agency, the University of Wisconsin Hospitals and Clinics Authority, the Fox River
5Navigational System Authority,
the Health Insurance Risk-Sharing Plan Authority, 6or the Bradley
center sports and entertainment corporation Center Sports and
7Entertainment Corporation.
SB451-SSA1,18,219
16.765
(8) If further violations of this section are committed during the term
10of the contract, the contracting agency, the Fox River Navigational System Authority,
11the Health Insurance Risk-Sharing Plan Authority, or the Bradley Center Sports
12and Entertainment Corporation may permit the violating party to complete the
13contract, after complying with this section, but thereafter the contracting agency, the
14Fox River Navigational System Authority,
the Health Insurance Risk-Sharing Plan
15Authority, or the Bradley Center Sports and Entertainment Corporation shall
16request the department to place the name of the party on the ineligible list for state
17contracts, or the contracting agency, the Fox River Navigational System Authority,
18the Health Insurance Risk-Sharing Plan Authority, or the Bradley Center Sports
19and Entertainment Corporation may terminate the contract without liability for the
20uncompleted portion or any materials or services purchased or paid for by the
21contracting party for use in completing the contract.
SB451-SSA1,19,723
16.85
(2) To furnish engineering, architectural, project management
, and other
24building construction services whenever requisitions therefor are presented to the
25department by any agency. The department may deposit moneys received from the
1provision of these services in the account under s. 20.505 (1) (kc) or in the general
2fund as general purpose revenue — earned. In this subsection, "agency" means an
3office, department, independent agency, institution of higher education, association,
4society
, or other body in state government created or authorized to be created by the
5constitution or any law, which is entitled to expend moneys appropriated by law,
6including the legislature and the courts, but not including an authority created in
7subch. III of ch. 149 or in ch. 231, 233, 234, or 237.
SB451-SSA1,19,239
16.865
(8) Annually in each fiscal year, allocate as a charge to each agency a
10proportionate share of the estimated costs attributable to programs administered by
11the agency to be paid from the appropriation under s. 20.505 (2) (k). The department
12may charge premiums to agencies to finance costs under this subsection and pay the
13costs from the appropriation on an actual basis. The department shall deposit all
14collections under this subsection in the appropriation account under s. 20.505 (2) (k).
15Costs assessed under this subsection may include judgments, investigative and
16adjustment fees, data processing and staff support costs, program administration
17costs, litigation costs
, and the cost of insurance contracts under sub. (5). In this
18subsection, "agency" means an office, department, independent agency, institution
19of higher education, association, society
, or other body in state government created
20or authorized to be created by the constitution or any law,
which that is entitled to
21expend moneys appropriated by law, including the legislature and the courts, but not
22including an authority created in
subch. III of ch. 149 or in ch. 231, 232, 233, 234, 235,
23or 237.
SB451-SSA1,20,4
120.145
(5) Health Insurance Risk-Sharing Plan. (g)
Insurer assessments. All
2moneys received in insurer assessments under s. 149.13, to be paid to the Health
3Insurance Risk-Sharing Plan Authority under subch. III of ch. 149 for deposit in the
4Health Insurance Risk-Sharing Plan fund under s. 149.11 (2).
SB451-SSA1,20,85
(m)
Federal grants for high risk pool. All moneys received from the federal
6government in high risk pool grants, to be paid to the Health Insurance
7Risk-Sharing Plan Authority under subch. III of ch. 149 for deposit in the Health
8Insurance Risk-Sharing Plan fund under s. 149.11 (2).
SB451-SSA1, s. 42
13Section
42. 25.55 (3) of the statutes is renumbered 149.11 (2) (a) 1. and
14amended to read:
SB451-SSA1,20,1615
149.11
(2) (a) 1. Insurer assessments under
ch. 149 s. 149.13, paid to the
16authority under s. 20.145 (5) (g).