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).
AB1-SA1, s. 9cr 15Section 9cr. 71.07 (5e) (c) 3. of the statutes is amended to read:
AB1-SA1,20,1916 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and
17use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
18by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48)
1977.585 (9) is $7,500,000, as determined by the department of commerce.
AB1-SA1, s. 9dc 20Section 9dc. 71.22 (9) of the statutes is amended to read:
AB1-SA1,21,221 71.22 (9) "Person" includes corporations, unless the context requires
22otherwise. "Person" may include, as determined by the department, any individual,
23partnership, general partner of a partnership, limited liability company, registered
24limited liability partnership, foreign limited liability partnership, syndicate, estate,

1trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or
2organization.
AB1-SA1, s. 9dd 3Section 9dd. 71.255 of the statutes is created to read:
AB1-SA1,21,4 471.255 Combined reporting. (1) Definitions. In this section:
AB1-SA1,21,75 (a) "Combined group" means the group of all persons whose income and
6apportionment factors are considered under sub. (2) to determine the taxpayer's
7share of the net business income or loss that is apportionable to this state.
AB1-SA1,21,108 (b) "Combined report" means a return under s. 71.24 that is filed on a form
9prescribed by the department that specifies the income, credits, and tax of each
10taxpayer member of a commonly controlled group operating as a unitary business.
AB1-SA1,21,1211 (c) "Commonly controlled group" means any of the following, but does not
12include an insurer that is exempt from taxation under s. 71.45 (1):
AB1-SA1,21,1913 1. A parent corporation and any corporation or chain of corporations that are
14connected to the parent corporation by direct or indirect ownership by the parent
15corporation if the parent corporation owns stock representing more than 50 percent
16of the voting power of at least one of the connected corporations or if the parent
17corporation or any of the connected corporations owns stock that cumulatively
18represents more than 50 percent of the voting power of each of the connected
19corporations.
AB1-SA1,21,2220 2. Any 2 or more corporations if a common owner, regardless of whether or not
21the owner is a corporation, directly or indirectly owns stock representing more than
2250 percent of the voting power of the corporations or the connected corporations.
AB1-SA1,21,2423 3. Any 2 or more corporations if stock representing more than 50 percent of the
24voting power in each corporation are interests that cannot be separately transferred.
AB1-SA1,22,5
14. Any 2 or more corporations if stock representing more than 50 percent of the
2voting power in each corporation is directly owned by, or for the benefit of, family
3members. In this subdivision, "family member" means an individual related by
4blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
5852.03 (2), 1995 stats., or the spouse of such an individual.
AB1-SA1,22,126 (d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that,
7regardless of where the corporation is located, would be subject to the taxes imposed
8under this chapter, if the corporation were doing business in this state. For purposes
9of this section, the business conducted by a pass-through entity that is directly or
10indirectly held by a corporation is considered the corporation's business
11proportionate to the corporation's distributive share of the pass-through entity's
12income. "Corporation" does not include a tax-option corporation.
AB1-SA1,22,1313 (e) "Department" means the department of revenue.
AB1-SA1,22,1714 (f) "Internal Revenue Code" means the Internal Revenue Code as defined in s.
1571.22 (4) and (4m), including any provision of a federal tax treaty that expressly
16applies to the states of the United States, but not including any other application of
17a federal tax treaty.
AB1-SA1,22,2218 (g) "Pass-through entity" means a general or limited partnership, any
19organization that is treated as a partnership for purposes of this chapter, a real
20estate investment trust, a regulated investment company, a real estate mortgage
21investment conduit, a financial asset securitization investment trust, a trust, or an
22estate.
AB1-SA1,23,223 (h) "Tax haven" means a jurisdiction that, for any taxable year, is identified by
24the organization for economic cooperation and development as a tax haven or as

1having a harmful, preferential tax regime or has no, or a nominal, effective tax on
2income and all of the following apply:
AB1-SA1,23,53 1. The jurisdiction has laws or practices that prevent the effective exchange of
4information, for tax purposes, with other governments on taxpayers benefiting from
5the tax regime.
AB1-SA1,23,106 2. The details of the legislative, legal, or administrative provisions of the
7jurisdiction's tax regime are not publicly available and apparent or are not
8consistently applied to similarly situated taxpayers or the information needed by tax
9authorities to determine a taxpayer's correct tax liability, including accounting
10records and underlying documentation, is not adequately available.
AB1-SA1,23,1311 3. The jurisdiction facilitates the establishment of foreign-owned entities
12without requiring a local substantive presence or prohibits such entities from having
13any commercial impact on the local economy.
AB1-SA1,23,1614 4. The tax regime explicitly or implicitly excludes the jurisdiction's resident
15taxpayers from taking advantage of the tax regime's benefits or prohibits enterprises
16that benefit from the regime from operating in the jurisdiction's domestic market.
AB1-SA1,23,2017 5. The jurisdiction has created a tax regime that is favorable for tax avoidance,
18based upon an overall assessment of relevant factors, including whether the
19jurisdiction has a significant untaxed offshore financial or other services sector
20relative to its overall economy.
AB1-SA1,23,2221 (i) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
22(1) or (2) and that is a member of a combined group.
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