AB1-SA1,6,2221 (b) A child care administrative agency shall authorize payment to child care
22providers as follows:
AB1-SA1,6,2423 1. For a licensed provider, the child care administrative agency shall authorize
24payment based on authorized units of service, except as follows:
AB1-SA1,7,4
1a. The child care administrative agency may authorize payment to a licensed
2provider based on units of service used by each child, up to the maximum number of
3authorized units, with the reimbursement rate increased by 10 percent to account
4for absent days, if the schedule of child care to be used is expected to vary widely.
AB1-SA1,7,85 b. The child care administrative agency may authorize payment to a licensed
6provider based on units of service used by each child, up to the maximum number of
7authorized units, if the child care administrative agency has documented 3 separate
8occasions on which the provider significantly overreported the attendance of a child.
AB1-SA1,7,119 2. For a certified provider, the child care administrative agency shall authorize
10payment for units of service used by each child, up to the maximum number of
11authorized units, except as provided in par. (c).
AB1-SA1,7,2012 (c) A child care administrative agency may authorize payment to a licensed or
13certified provider to hold a slot for a child if the child's parent has a temporary break
14in employment and intends to return to work and to continue to use the services of
15the provider upon returning to work. The child care administrative agency may
16authorize payment for no more than 6 weeks if the absence is due to a medical reason
17and is documented by a physician or for no more than 4 weeks if the absence is due
18to another reason. The department and child care administrative agency may not
19consider payment for a temporary absence to be an overpayment if the parent
20intended to, but does not actually, return to work.
AB1-SA1, s. 9be 21Section 9be. 49.175 (1) (p) of the statutes, as affected by 2007 Wisconsin Act
2220
, is amended to read:
AB1-SA1,7,2523 49.175 (1) (p) Direct child care services. For direct child care services under s.
2449.155, $340,601,800 $359,201,800 in fiscal year 2007-08 and $355,352,000 in fiscal
25year 2008-09.
AB1-SA1, s. 9bf
1Section 9bf. 49.45 (2) (a) 17. of the statutes is amended to read:
AB1-SA1,8,62 49.45 (2) (a) 17. Notify the governor, the joint committee on legislative
3organization, the joint committee on finance and appropriate standing committees,
4as determined by the presiding officer of each house, if the appropriation accounts
5under s. 20.435 (4) (b) and (gp) (xd) are insufficient to provide the state share of
6medical assistance.
AB1-SA1, s. 9bg 7Section 9bg. 49.45 (5m) (ag) of the statutes is repealed.
AB1-SA1, s. 9bh 8Section 9bh. 49.45 (5m) (am) of the statutes is amended to read:
AB1-SA1,8,179 49.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriation accounts
10under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department shall distribute not
11more than $2,256,000 $5,256,000 in each fiscal year 2007-08 and each fiscal year
12thereafter
, to provide supplemental funds to rural hospitals that, as determined by
13the department, have high utilization of inpatient services by patients whose care
14is provided from governmental sources, and to provide supplemental funds to critical
15access hospitals,
except that the department may not distribute funds to a rural
16hospital or to a critical access hospital to the extent that the distribution would
17exceed any limitation under 42 USC 1396b (i) (3).
AB1-SA1, s. 9bi 18Section 9bi. 49.45 (6m) (ag) (intro.) of the statutes, as affected by 2007
19Wisconsin Act 97
, is amended to read:
AB1-SA1,9,220 49.45 (6m) (ag) (intro.) Payment for care provided in a facility under this
21subsection made under s. 20.435 (4) (b), (gp), (o), (pa), or (w), or (xd) shall, except as
22provided in pars. (bg), (bm), and (br), be determined according to a prospective
23payment system updated annually by the department. The payment system shall
24implement standards that are necessary and proper for providing patient care and

1that meet quality and safety standards established under subch. II of ch. 50 and ch.
2150. The payment system shall reflect all of the following:
AB1-SA1, s. 9bk 3Section 9bk. 49.45 (6v) (b) of the statutes is amended to read:
AB1-SA1,9,94 49.45 (6v) (b) The department shall, each year, submit to the joint committee
5on finance a report for the previous fiscal year, except for the 1997-98 fiscal year, that
6provides information on the utilization of beds by recipients of medical assistance in
7facilities and a discussion and detailed projection of the likely balances,
8expenditures, encumbrances and carry over of currently appropriated amounts in
9the appropriation accounts under s. 20.435 (4) (b), (gp), and (o), and (xd).
AB1-SA1, s. 9bL 10Section 9bL. 49.45 (6x) (a) of the statutes is amended to read:
AB1-SA1,9,1611 49.45 (6x) (a) Notwithstanding sub. (3) (e), from the appropriation accounts
12under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department shall distribute not
13more than $4,748,000 in each fiscal year, to provide funds to an essential access city
14hospital, except that the department may not allocate funds to an essential access
15city hospital to the extent that the allocation would exceed any limitation under 42
16USC 1396b
(i) (3).
AB1-SA1, s. 9bm 17Section 9bm. 49.45 (6y) (a) of the statutes is amended to read:
AB1-SA1,9,2518 49.45 (6y) (a) Notwithstanding sub. (3) (e), from the appropriation accounts
19under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department shall may
20distribute funding in each fiscal year to provide supplemental payment to hospitals
21that enter into a contract under s. 49.02 (2) to provide health care services funded
22by a relief block grant, as determined by the department, for hospital services that
23are not in excess of the hospitals' customary charges for the services, as limited under
2442 USC 1396b (i) (3). If no relief block grant is awarded under this chapter or if the
25allocation of funds to such hospitals would exceed any limitation under 42 USC

11396b (i) (3), the department may distribute funds to hospitals that have not entered
2into a contract under s. 49.02 (2).
AB1-SA1, s. 9bn 3Section 9bn. 49.45 (6y) (am) of the statutes is amended to read:
AB1-SA1,10,104 49.45 (6y) (am) Notwithstanding sub. (3) (e), from the appropriation accounts
5under s. 20.435 (4) (b), (h), (gp), (o), and (w), and (xd), the department shall distribute
6funding in each fiscal year to provide supplemental payments to hospitals that enter
7into contracts under s. 49.02 (2) with a county having a population of 500,000 or more
8to provide health care services funded by a relief block grant, as determined by the
9department, for hospital services that are not in excess of the hospitals' customary
10charges for the services, as limited under 42 USC 1396b (i) (3).
AB1-SA1, s. 9bp 11Section 9bp. 49.45 (6z) (a) (intro.) of the statutes, as affected by 2007
12Wisconsin Act 20
, is amended to read:
AB1-SA1,10,2413 49.45 (6z) (a) (intro.) Notwithstanding sub. (3) (e), from the appropriation
14accounts under s. 20.435 (4) (b), (gp), (o), and (w), and (xd), the department may
15distribute funding in each fiscal year to supplement payment for services to hospitals
16that enter into indigent care agreements, in accordance with the approved state plan
17for services under 42 USC 1396a, with relief agencies that administer the medical
18relief block grant under this chapter, if the department determines that the hospitals
19serve a disproportionate number of low-income patients with special needs. If no
20medical relief block grant under this chapter is awarded or if the allocation of funds
21to such hospitals would exceed any limitation under 42 USC 1396b (i) (3), the
22department may distribute funds to hospitals that have not entered into indigent
23care agreements. The department may not distribute funds under this subsection
24to the extent that the distribution would do any of the following:
AB1-SA1, s. 9bq 25Section 9bq. 49.45 (8) (b) of the statutes is amended to read:
AB1-SA1,11,5
149.45 (8) (b) Reimbursement under s. 20.435 (4) (b), (gp), (o), and (w), and (xd)
2for home health services provided by a certified home health agency or independent
3nurse shall be made at the home health agency's or nurse's usual and customary fee
4per patient care visit, subject to a maximum allowable fee per patient care visit that
5is established under par. (c).
AB1-SA1, s. 9br 6Section 9br. 49.45 (24m) (intro.) of the statutes is amended to read:
AB1-SA1,11,117 49.45 (24m) (intro.) From the appropriation accounts under s. 20.435 (4) (b),
8(gp), (o), and (w), and (xd), in order to test the feasibility of instituting a system of
9reimbursement for providers of home health care and personal care services for
10medical assistance recipients that is based on competitive bidding, the department
11shall:
AB1-SA1, s. 9bt 12Section 9bt. 49.45 (52) of the statutes is amended to read:
AB1-SA1,11,2313 49.45 (52) Payment adjustments. Beginning on January 1, 2003, the
14department may, from the appropriation account under s. 20.435 (7) (b), make
15Medical Assistance payment adjustments to county departments under s. 46.215,
1646.22, 46.23, or 51.42, or 51.437 or to local health departments, as defined in s. 250.01
17(4), as appropriate, for covered services under s. 49.46 (2) (a) 2. and 4. d. and f. and
18(b) 6. b., c., f., fm., g., j., k., L., Lm., and m., 9., 12., 12m., 13., 15., and 16. Payment
19adjustments under this subsection shall include the state share of the payments.
20The total of any payment adjustments under this subsection and Medical Assistance
21payments made from appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w),
22and (xd)
may not exceed applicable limitations on payments under 42 USC 1396a (a)
23(30) (A).
AB1-SA1, s. 9bu 24Section 9bu. 49.45 (58) of the statutes is created to read:
AB1-SA1,12,9
149.45 (58) Health maintenance organization payments to hospitals. (a) The
2department shall develop a methodology for calculating rate increases for inpatient
3and outpatient hospital services in connection with the assessment imposed on
4hospitals under s. 50.375. The methodology shall incorporate encounter data
5provided by health maintenance organizations and information that the department
6uses to calculate the capitated rates that the department pays health maintenance
7organizations for providing services to recipients of medical assistance. The
8department shall publicly disclose the methodology. The department shall review
9the methodology at least once every 12 months.
AB1-SA1,12,1210 (b) The department shall require, as a term of contracts with health
11maintenance organizations to provide medical assistance services, that the health
12maintenance organization do all of the following:
AB1-SA1,12,1513 1. Make monthly prospective payments, calculated using the methodology
14under par. (a), to hospitals that serve medical assistance recipients who are enrolled
15in the health maintenance organization.
AB1-SA1,12,1916 2. Calculate the amounts that result from applying the rate increases that are
17derived using the methodology under par. (a) to services for recipients of medical
18assistance for which hospitals submit claims to the health maintenance
19organization.
AB1-SA1,12,2420 3. Within 90 days after the end of each 6-month period, compare the amounts
21that the health maintenance organization paid hospitals under subd. 1. for the
226-month period with the amounts calculated under subd. 2. for services provided
23during that same period. If the amounts under subd. 2. exceed the amounts of the
24payments under subd. 1., pay hospitals the difference within 90 days.
AB1-SA1,13,5
1(c) If the amounts that a health maintenance organization paid hospitals under
2par. (b) 1. for a 6-month period exceed the amounts calculated under par. (b) 2. for
3services provided during the same period, hospitals shall pay the health
4maintenance organization the difference within 90 days after the comparison of
5amounts under par. (b) 3. is completed.
AB1-SA1,13,126 (d) If the department determines that a health maintenance organization has
7not complied with a condition under par. (b), the department shall require the health
8maintenance organization to comply with the condition within 15 days after the
9department's determination. The department may terminate a contract with a
10health maintenance organization for failure to comply with a condition under par.
11(b). The department shall audit health maintenance organizations to determine
12whether they have complied with the conditions under par. (b).
AB1-SA1,13,2113 (e) If a health maintenance organization and hospital cannot resolve the
14amount that a health maintenance organization owes a hospital under par. (b) 3. or
15that a hospital owes a health maintenance organization under par. (c), and either the
16health maintenance organization or the hospital, within 6 months after the end of
17the time period to which the disputed amount relates, requests that the department
18determine the amount owed, the department shall determine the amount within 90
19days after the request is made. The health maintenance organization or hospital is,
20upon request, entitled to a contested case hearing under ch. 227 on the department's
21determination.
AB1-SA1, s. 9cb 22Section 9cb. 49.472 (6) (a) of the statutes is amended to read:
AB1-SA1,14,323 49.472 (6) (a) Notwithstanding sub. (4) (a) 3., from the appropriation account
24under s. 20.435 (4) (b), (gp), or (w), or (xd), the department shall, on the part of an
25individual who is eligible for medical assistance under sub. (3), pay premiums for or

1purchase individual coverage offered by the individual's employer if the department
2determines that paying the premiums for or purchasing the coverage will not be more
3costly than providing medical assistance.
AB1-SA1, s. 9cc 4Section 9cc. 49.472 (6) (b) of the statutes is amended to read:
AB1-SA1,14,85 49.472 (6) (b) If federal financial participation is available, from the
6appropriation account under s. 20.435 (4) (b), (gp), or (w), or (xd), the department may
7pay medicare Part A and Part B premiums for individuals who are eligible for
8medicare and for medical assistance under sub. (3).
AB1-SA1, s. 9cd 9Section 9cd. 49.473 (5) of the statutes is amended to read:
AB1-SA1,14,1410 49.473 (5) The department shall audit and pay, from the appropriation
11accounts under s. 20.435 (4) (b), (gp), and (o), and (xd), allowable charges to a provider
12who is certified under s. 49.45 (2) (a) 11. for medical assistance on behalf of a woman
13who meets the requirements under sub. (2) for all benefits and services specified
14under s. 49.46 (2).
AB1-SA1, s. 9ce 15Section 9ce. 50.375 of the statutes is created to read:
AB1-SA1,14,22 1650.375 Assessment. (1) Except as provided in subs. (2) and (7), for the
17privilege of doing business in this state, there is imposed on each hospital an annual
18assessment, based on the hospital's gross patient revenue, that each hospital shall
19pay quarterly by September 1, December 1, March 1, and June 1 of each year,
20beginning with the payment due by September 1, 2008, except that the entire annual
21assessment for fiscal year 2007-08 shall be paid by June 1, 2008. The assessments
22shall be deposited into the hospital assessment fund.
AB1-SA1,15,2 23(2) At the discretion of the department, a hospital that is unable timely to make
24a payment by a date specified under sub. (1) may be allowed to make a delayed
25payment. A determination by the department that a hospital may not make a

1delayed payment under this subsection is final and is not subject to review under ch.
2227.
AB1-SA1,15,5 3(3) The amount of each hospital's assessment shall be based on the information
4that shall be provided to the department under s. 153.46 (5) or shall be based on any
5other source that is approved in the state plan for services under 42 USC 1396.
AB1-SA1,15,10 6(4) The department shall verify the amount of each hospital's gross patient
7revenue and shall determine the amount of the assessment owed by each hospital
8based on a uniform rate that is applicable to total gross patient revenue that the
9department estimates will yield the amounts specified in the appropriation schedule
10under s. 20.005 (3) for the appropriation accounts under s. 20.435 (4) (xc) and (xd).
AB1-SA1,15,12 11(5) The department shall levy, enforce, and collect the assessments under this
12section and shall develop and distribute forms necessary for these purposes.
AB1-SA1,15,19 13(6) If the department determines that any portion of the revenue collected
14under sub. (5) to provide Medical Assistance program benefits and payment
15increases for inpatient and outpatient hospital services as fee for service or through
16health maintenance organizations or to support the Medical Assistance Program is
17not eligible for federal financial participation, the department will refund that
18amount of revenue to hospitals in proportion to each hospital's payment of the
19assessment.
AB1-SA1,15,21 20(7) This section does not apply to a critical access hospital, as defined in s. 50.33
21(1g), or to an institution for mental diseases, as defined in s. 46.011 (1m).
AB1-SA1,16,2 22(8) Sections 77.59 (1) to (5), (6) (intro.), (a), and (c), and (7) to (10), 77.60 (1) to
23(7), (9), and (10), 77.61 (9) and (12) to (14), and 77.62, as they apply to the taxes under
24subch. III of ch. 77, apply to the assessment under this section, except that the

1amount of any assessment collected under sub. (1) shall be deposited in the hospital
2assessment fund.
AB1-SA1,16,5 3(9) By December 31, 2008, and by every December 31 thereafter, the
4department shall report to the joint committee on finance all of the following
5information for the immediately previous state fiscal year:
AB1-SA1,16,66 (a) The total amount of assessments collected under this section.
AB1-SA1,16,87 (b) The total amount of assessments collected from each hospital under this
8section.
AB1-SA1,16,109 (c) The total amounts that the department determines were paid to health
10maintenance organizations for increased Medical Assistance payments to hospitals.
AB1-SA1,16,1211 (d) The total amount of payments made to each hospital by health maintenance
12organizations under s. 49.45 (58) (b) 1.
AB1-SA1,16,1613 (e) The total amount of Medical Assistance payments made to each hospital and
14the portion of the Medical Assistance capitated payments made to health
15maintenance organizations for inpatient and outpatient hospital services from
16appropriation accounts of general purpose revenues.
AB1-SA1,16,1917 (f) The total amounts, including the amounts specified under par. (c), that the
18department determines were paid to health maintenance organizations for Medical
19Assistance payments to hospitals.
AB1-SA1,16,2220 (g) The results of any audits conducted by the department under s. 49.45 (58)
21concerning Medical Assistance payments and any actions taken by the department
22as a result of such an audit.
AB1-SA1, s. 9cf 23Section 9cf. 59.58 (6) (cb) of the statutes is created to read:
AB1-SA1,17,3
159.58 (6) (cb) The authority shall be responsible for sponsoring, developing,
2constructing, and operating a commuter rail transit system connecting the cities of
3Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.
AB1-SA1, s. 9cg 4Section 9cg. 59.58 (6) (cr) of the statutes is amended to read:
AB1-SA1,17,85 59.58 (6) (cr) The authority may hire staff, conduct studies, and expend funds
6essential to the preparation of the report specified in par. (e) and in furtherance of
7its responsibility under par. (cb) to develop and construct the KRM commuter rail
8link
.
AB1-SA1, s. 9ch 9Section 9ch. 59.58 (6) (e) 3g. of the statutes is created to read:
AB1-SA1,17,1310 59.58 (6) (e) 3g. A study on the feasibility of adding a commuter rail stop and
11station at points where any proposed commuter rail route would intersect National
12Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or
13both.
AB1-SA1, s. 9ci 14Section 9ci. 59.58 (6) (e) 3m. of the statutes is created to read:
AB1-SA1,17,1715 59.58 (6) (e) 3m. A study on the feasibility of extending any proposed commuter
16rail project through the 30th Street corridor in the city of Milwaukee to the northern
17county line of Milwaukee County.
AB1-SA1, s. 9cj 18Section 9cj. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.
AB1-SA1, s. 9ck 19Section 9ck. 59.58 (6) (f) of the statutes is created to read:
AB1-SA1,17,2420 59.58 (6) (f) 1. The authority may issue bonds, the principal and interest on
21which are payable exclusively from all or a portion of any revenues received by the
22authority. The authority may secure its bonds by a pledge of any income or revenues
23from any operations, rent, aids, grants, subsidies, contributions, or other source of
24moneys whatsoever.
AB1-SA1,18,4
12. The authority may issue bonds in an aggregate principal amount not to
2exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued
3under this subdivision, for the purpose of providing funds for the anticipated local
4funding share required for initiating KRM commuter rail link service.
AB1-SA1,18,65 3. Neither the governing body of the authority nor any person executing the
6bonds is personally liable on the bonds by reason of the issuance of the bonds.
AB1-SA1,18,117 4. The bonds of the authority are not a debt of the counties that created the
8authority. Neither these counties nor the state are liable for the payment of the
9bonds. The bonds of the authority shall be payable only out of funds or properties
10of the authority. The bonds of the authority shall state the restrictions contained in
11this subdivision on the face of the bonds.
AB1-SA1,18,2512 5. Bonds of the authority shall be authorized by resolution of the authority's
13governing body. The bonds may be issued under such a resolution or under a trust
14indenture or other security instrument. The bonds may be issued in one or more
15series and may be in the form of coupon bonds or registered bonds under s. 67.09.
16The bonds shall bear the dates, mature at the times, bear interest at the rates, be in
17the denominations, have the rank or priority, be executed in the manner, be payable
18in the medium of payment and at the places, and be subject to the terms of
19redemption, with or without premium, as the resolution, trust indenture, or other
20security instrument provides. The authority may sell the bonds at public or private
21sales at the price or prices determined by the authority. If a member of the governing
22body of the authority whose signature appears on any bonds or coupons ceases to be
23a member of the governing body of the authority before the delivery of such
24obligations, the member's signature shall, nevertheless, be valid for all purposes as
25if the member had remained a member until delivery of the bonds.
AB1-SA1,19,12
16. The authority may issue refunding bonds for the purpose of paying any of
2its bonds at or prior to maturity or upon acceleration or redemption. The authority
3may issue refunding bonds at such time prior to the maturity or redemption of the
4refunded bonds as the authority deems to be in the public interest. The refunding
5bonds may be issued in sufficient amounts to pay or provide the principal of the bonds
6being refunded, together with any redemption premium on the bonds, any interest
7accrued or to accrue to the date of payment of the bonds, the expenses of issue of the
8refunding bonds, the expenses of redeeming the bonds being refunded, and such
9reserves for debt service or other capital or current expenses from the proceeds of
10such refunding bonds as may be required by the resolution, trust indenture, or other
11security instruments. To the extent applicable, refunding bonds are subject to subd.
125.
AB1-SA1, s. 9cL 13Section 9cL. 66.0615 (1m) (f) 2. of the statutes is amended to read:
AB1-SA1,19,1814 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a),
15and (15b),
77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m),
16and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and
1777.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described
18under subd. 1.
AB1-SA1, s. 9cm 19Section 9cm. 70.111 (23) of the statutes is amended to read:
AB1-SA1,19,2520 70.111 (23) Vending machines. All machines that automatically dispense soda
21water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage
22under s. 77.54 (20) (a) and (b)
food and food ingredient, as defined in s. 77.51 (3t),
23upon the deposit in the machines of specified coins or currency, or insertion of a credit
24card, in payment for the soda water beverages, food or beverages food and food
25ingredient, as defined in s. 77.51 (3t)
.
AB1-SA1, s. 9cn
1Section 9cn. 71.05 (1) (c) 9. of the statutes is created to read:
AB1-SA1,20,22 71.05 (1) (c) 9. The regional transit authority under s. 59.58 (6) (f).
AB1-SA1, s. 9co 3Section 9co. 71.07 (5e) (b) of the statutes is amended to read:
AB1-SA1,20,114 71.07 (5e) (b) Filing claims. Subject to the limitations provided in this
5subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
6taxable year following the taxable year in which the claimant claims an exemption
7a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
8the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each
9taxable year for 2 years, the amount certified by the department of commerce that
10resulted from the claimant claimed as an exemption claiming a deduction under s.
1177.54 (48) 77.585 (9).
AB1-SA1, s. 9cp 12Section 9cp. 71.07 (5e) (c) 1. of the statutes is amended to read:
AB1-SA1,20,1413 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the
14claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
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