SB21-SSA1,539,104 49.325 (2) Assessment of needs. Before developing and submitting a proposed
5budget for services purchased or directly provided or purchased under this
6subchapter or ch. 48 and for community-based juvenile delinquency-related
7services purchased or directly provided under ch. 938
to the county executive or
8county administrator or the county board, the county departments listed in sub. (1)
9shall assess needs and inventory resources and services, using an open public
10participation process.
SB21-SSA1,1770 11Section 1770. 49.325 (2g) (a) of the statutes is amended to read:
SB21-SSA1,540,312 49.325 (2g) (a) The department shall annually submit to the county board of
13supervisors in a county with a single-county department or the county boards of
14supervisors in counties with a multicounty department a proposed written contract
15containing the allocation of funds for services purchased or directly provided or
16purchased
under this subchapter or ch. 48, for community-based juvenile
17delinquency-related services purchased or directly provided under ch. 938,
and for
18such administrative requirements as necessary. The contract as approved may
19contain conditions of participation consistent with federal and state law. The
20contract may also include provisions necessary to ensure uniform cost accounting of
21services. Any changes to the proposed contract shall be mutually agreed upon. The
22county board of supervisors in a county with a single-county department or the
23county boards of supervisors in counties with a multicounty department shall
24approve the contract before January 1 of the year in which it takes effect unless the
25department grants an extension. The county board of supervisors in a county with

1a single-county department or the county boards of supervisors in counties with a
2multicounty department may designate an agent to approve addenda to any contract
3after the contract has been approved.
SB21-SSA1,1771 4Section 1771. 49.325 (2g) (b) of the statutes is amended to read:
SB21-SSA1,540,105 49.325 (2g) (b) The department may not approve contracts for amounts in
6excess of available revenues. The county board of supervisors in a county with a
7single-county department or the county boards of supervisors in counties with a
8multicounty department may appropriate funds for community-based juvenile
9delinquency-related services.
Actual expenditure of county funds shall be reported
10in compliance with procedures developed by the department.
SB21-SSA1,1772 11Section 1772. 49.325 (2g) (c) of the statutes is amended to read:
SB21-SSA1,540,1612 49.325 (2g) (c) The joint committee on finance may require the department to
13submit contracts between county departments under ss. 46.215, 46.22, and 46.23
14and providers of services under this subchapter or ch. 48 or of community-based
15juvenile delinquency-related services under ch. 938
to the committee for review and
16approval.
SB21-SSA1,1773 17Section 1773. 49.325 (2r) (a) 1. of the statutes is amended to read:
SB21-SSA1,540,2218 49.325 (2r) (a) 1. For services under this subchapter or ch. 48 or
19community-based juvenile delinquency-related services under ch. 938
that
20duplicate or are inconsistent with services being purchased or provided or purchased
21by the department or other county departments receiving grants-in-aid or
22reimbursement from the department.
SB21-SSA1,1774 23Section 1774. 49.325 (2r) (a) 2. of the statutes is amended to read:
SB21-SSA1,541,524 49.325 (2r) (a) 2. Inconsistent with state or federal statutes, rules, or
25regulations, in which case the department may also arrange for the provision of

1services under this subchapter or ch. 48 or community-based juvenile
2delinquency-related services under ch. 938
by an alternate agency. The department
3may not arrange for the provision of those services by an alternate agency unless the
4joint committee on finance or a review body designated by the committee reviews and
5approves the department's determination.
SB21-SSA1,1775 6Section 1775. 49.34 (1) of the statutes is amended to read:
SB21-SSA1,541,177 49.34 (1) All services under this subchapter and ch. 48 and all
8community-based juvenile delinquency-related services under ch. 938
purchased
9by the department or by a county department under s. 46.215, 46.22, or 46.23 shall
10be authorized and contracted for under the standards established under this section.
11The department may require the county departments to submit the contracts to the
12department for review and approval. For purchases of $10,000 or less the
13requirement for a written contract may be waived by the department. No contract
14is required for care provided by foster homes that are required to be licensed under
15s. 48.62. When the department directly contracts for services, it the department
16shall follow the procedures in this section in addition to meeting purchasing
17requirements established in s. 16.75.
SB21-SSA1,1776 18Section 1776. 49.34 (2) of the statutes is amended to read:
SB21-SSA1,541,2519 49.34 (2) All services purchased under this subchapter and ch. 48 and all
20community-based juvenile delinquency-related services purchased under ch. 938

21shall meet standards established by the department and other requirements
22specified by the purchaser in the contract. Based on these standards the department
23shall establish standards for cost accounting and management information systems
24that shall monitor the utilization of the services, and document the specific services
25in meeting the service plan for the client and the objective of the service.
SB21-SSA1,1776n
1Section 1776n. 49.34 (3) (a) of the statutes is amended to read:
SB21-SSA1,542,132 49.34 (3) (a) Purchase of service contracts Contracts under this section shall
3be written in accordance with rules promulgated and procedures established by the
4department. Contracts for client services shall show the total dollar amount to be
5purchased and; shall show for each service the number of clients to be served,
6number of client service units, the unit rate per client service , and the total dollar
7amount for each service; shall permit the provider of a rate-based service to generate
8a surplus of revenue earned under the contract over allowable costs incurred in the
9contract period; and shall permit a nonprofit corporation that is a provider of a
10rate-based service or a rate-regulated service to retain from that surplus the
11amounts specified in sub. (5m) (b), (d), (e), or (em), whichever is applicable. Nothing
12in this paragraph shall be construed to guarantee the generation of a surplus by a
13provider of a rate-based service
.
SB21-SSA1,1776p 14Section 1776p. 49.34 (3) (c) of the statutes is amended to read:
SB21-SSA1,543,215 49.34 (3) (c) For proprietary agencies, contracts may include a percentage
16add-on for profit according to rules promulgated by the department. In calculating
17profits generated by a rate-regulated service, a proprietary agency may combine
18revenues in the same manner that a nonprofit corporation is permitted to combine
19revenues under sub. (5m) (d) 1. and may offset surpluses generated by affiliated
20providers against deficits generated by such providers in the same manner that a
21nonprofit corporation is permitted to offset surpluses against deficits under sub. (5m)
22(d) 2. In calculating profits generated by a rate-based service, a proprietary agency
23that is a successor provider following a merger, acquisition, consolidation,
24reorganization, sale, or other transfer may offset surpluses generated by a
25preexisting provider against deficits generated by such a provider in the same

1manner that a nonprofit corporation is permitted to offset surpluses against deficits
2under sub. (5m) (e).
SB21-SSA1,1777 3Section 1777. 49.34 (3) (f) of the statutes is repealed.
SB21-SSA1,1777fb 4Section 1777fb. 49.34 (5m) (a) 1. of the statutes is renumbered 49.34 (5m) (a)
51r.
SB21-SSA1,1777fc 6Section 1777fc. 49.34 (5m) (a) 1d. of the statutes is created to read:
SB21-SSA1,543,87 49.34 (5m) (a) 1d. "Affiliated provider" means a provider that has control of,
8is subject to the control of, or is under common control with another provider.
SB21-SSA1,1777fe 9Section 1777fe. 49.34 (5m) (a) 1g. of the statutes is created to read:
SB21-SSA1,543,1210 49.34 (5m) (a) 1g. "Combined revenues" means the aggregate revenues
11received by a provider from all purchasers of all rate-regulated services provided by
12the provider.
SB21-SSA1,1777ff 13Section 1777ff. 49.34 (5m) (a) 1j. of the statutes is created to read:
SB21-SSA1,543,1714 49.34 (5m) (a) 1j. "Control" means the possession of the power, directly or
15indirectly, to direct or cause the direction of the management and policies of a
16provider through the ownership of more than 50 percent of the voting rights of the
17provider, by contract, or otherwise.
SB21-SSA1,1777fh 18Section 1777fh. 49.34 (5m) (a) 2. of the statutes is amended to read:
SB21-SSA1,543,2519 49.34 (5m) (a) 2. "Rate-based service" means a service or a group of similar
20services, as determined by the department, provided under one or more contracts
21between a provider and the purchaser of those services
that is reimbursed through
22a prospectively set rate and that is distinguishable from other services or groups of
23similar services by the purpose for which funds are provided for that service or group
24of similar services and by the source of funding for that service or group of similar
25services.
SB21-SSA1,1777fj
1Section 1777fj. 49.34 (5m) (a) 3. of the statutes is created to read:
SB21-SSA1,544,32 49.34 (5m) (a) 3. "Rate-regulated service" means a rate-based service that is
3reimbursed through a rate established under s. 49.343.
SB21-SSA1,1777fk 4Section 1777fk. 49.34 (5m) (b) 1. and 2. of the statutes are consolidated,
5renumbered 49.34 (5m) (b) and amended to read:
SB21-SSA1,545,206 49.34 (5m) (b) Subject to subds. 2. and 3. and par. pars. (d), (e), and (em), if
7revenue under a contract for the provision of a rate-based service exceeds allowable
8costs incurred in the contract period, the provider may shall be permitted to retain
9from the any surplus generated by that rate-based service up to 5% of the contract
10amount. A provider that retains a surplus under this subdivision shall
as provided
11in this paragraph and to
use that retained surplus to cover a deficit between revenue
12and allowable costs incurred in any preceding or future contract period for the same
13rate-based service that generated the surplus or to address the programmatic needs
14of clients served by the same rate-based service that generated the surplus. This
15subdivision does not apply to a child welfare agency that is authorized under s. 48.61
16(7) to license foster homes, a group home, as defined in s. 48.02 (7), or a residential
17care center for children and youth, as defined in s. 48.02 (15d). 2.
amount, in the sole
18discretion of the provider, to cover any allowable costs specified in 2 CFR part 200
19or in any other applicable federal law or regulation. If on December 31 of any year
20the amount accumulated by a provider from all contract periods ending during that
21year for a rate-based service exceeds 5 percent of the total revenue received from all
22of those contract periods, the provider shall provide written notice of that excess to
23all purchasers of the rate-based service and, upon the written request of such a
24purchaser received no later than 6 months after the date of the notice, shall return
25to the purchaser the purchaser's proportional share of that excess.
Subject to subd.

13. and par.
pars. (d), (e), and (em), a provider may accumulate funds from more than
2one contract period under this paragraph, except that, if at the end of a contract
3period the amount accumulated from all contract periods for a rate-based service
4exceeds 10% of the amount of all current contracts for that rate-based service, the
5provider shall, at the request of a purchaser, return to that purchaser the purchaser's
6proportional share of that excess and use any of that excess that is not returned to
7a purchaser to reduce the provider's unit rate per client for that rate-based service
8in the next contract period. If a provider has held for 4 consecutive contract periods
9an accumulated reserve for a rate-based service that is equal to or exceeds 10% of
10the amount of all current contracts for that rate-based service, the provider shall
11apply 50% of that accumulated amount to reducing its unit rate per client for that
12rate-based service in the next contract period. The department may grant an
13exception to this subdivision upon request of a provider that is a child welfare agency
14that is authorized under s. 48.61 (7) to license foster homes, a group home, as defined
15in s. 48.02 (7), or a residential care center for children and youth, as defined in s. 48.02
16(15d)
. A contract for a rate-based service may not limit the provider to retaining
17from any surplus generated by that service an amount that is less than 5 percent of
18the revenue received under the contract. Nothing in this paragraph shall be
19construed to guarantee the generation of a surplus by the provider of a rate-based
20service
.
SB21-SSA1,1777fn 21Section 1777fn. 49.34 (5m) (b) 3. of the statutes is repealed.
SB21-SSA1,1777fp 22Section 1777fp. 49.34 (5m) (d) of the statutes is created to read:
SB21-SSA1,546,1723 49.34 (5m) (d) 1. Subject to subd. 2. and par. (e), if on December 31 of any year
24the combined revenues from all contract periods ending during that year for all
25rate-regulated services exceed the allowable costs related to the provision of those

1rate-regulated services in that year, the provider shall be permitted to retain any
2surplus generated by those rate-regulated services as provided in this subdivision
3and to use that retained amount, in the sole discretion of the provider, to cover any
4allowable costs specified in 2 CFR Part 200 or in any other applicable federal law or
5regulation. If on December 31 of any year the amount accumulated by a provider
6from all contract periods ending during that year for a rate-regulated service
7provided under those contracts in that year exceeds 5 percent of the total revenue
8received from all of those contract periods, the provider shall provide written notice
9of that excess to all purchasers of that rate-regulated service and, upon the written
10request of such a purchaser received no later than 6 months after the date of the
11notice, shall return to the purchaser the purchaser's proportional share of that
12excess. The department may grant an exception to this subdivision upon the request
13of a provider of a rate-regulated service. A contract for a rate-regulated service may
14not limit the provider to retaining from any surplus generated by that service an
15amount that is less than 5 percent of the revenue received under the contract.
16Nothing in this subdivision shall be construed to guarantee the generation of a
17surplus by the provider of a rate-regulated service.
SB21-SSA1,547,218 2. In calculating under subd. 1. the surplus generated by 2 or more affiliated
19providers, any surplus of combined revenues over allowable costs generated by one
20or more of those affiliated providers shall be reduced, but not below zero, by any
21deficit between combined revenues and allowable costs generated by any one or more
22of those affiliated providers. If after that reduction there remains any net surplus,
23that net surplus shall be allocated among the affiliated providers that generated a
24surplus in proportion to the amount of surplus generated by each such affiliated

1provider and subd. 1. shall apply to each such affiliated provider's proportionate
2share of that surplus.
SB21-SSA1,1777fq 3Section 1777fq. 49.34 (5m) (e) of the statutes is created to read:
SB21-SSA1,547,104 49.34 (5m) (e) In making the calculations under pars. (b) and (d), if 2 or more
5providers engage in a merger, acquisition, consolidation, reorganization, sale, or
6other transfer resulting in a single successor provider, all surpluses generated by a
7rate-based service or a rate-regulated service provided by a preexisting provider
8shall be offset against all deficits generated by that service provided by a preexisting
9provider and those net surpluses or deficits shall be the surpluses or deficits of the
10successor provider.
SB21-SSA1,1777fr 11Section 1777fr. 49.34 (5m) (em) of the statutes is amended to read:
SB21-SSA1,547,1812 49.34 (5m) (em) Notwithstanding par. (b) 1. and 2., a county department under
13s. 46.215, 51.42, or 51.437 providing client services in a county having a population
14of 500,000 or more or a nonstock, nonprofit corporation providing client services in
15such a county may not retain a surplus generated by a rate-based service or
16accumulate funds from more than one contract period for a rate-based service from
17revenues that are used to meet the maintenance-of-effort requirement under the
18federal temporary assistance for needy families program under 42 USC 601 to 619.
SB21-SSA1,1778 19Section 1778. 49.345 (1) of the statutes is amended to read:
SB21-SSA1,547,2420 49.345 (1) Liability and the collection and enforcement of such liability for the
21care, maintenance, services, and supplies specified in this section are governed
22exclusively by this section, except in cases of child support ordered by a court under
23s. 48.355 (2) (b) 4., 48.357 (5m) (a), or 48.363 (2), 938.183 (4), 938.355 (2) (b) 4.,
24938.357 (5m) (a), or 938.363 (2)
or ch. 767.
SB21-SSA1,1779 25Section 1779. 49.345 (2) of the statutes is amended to read:
SB21-SSA1,548,21
149.345 (2) Except as provided in sub. (14) (b) and (c), any person, including but
2not limited to
a person placed under s. 48.345 (3) or , 48.357 (1) or (2m), 938.183,
3938.34 (3) or (4d), or 938.357 (1), (2m), (4), or (5) (e),
receiving care, maintenance,
4services, and supplies provided by any institution in this state, in which the state is
5chargeable with all or part of the person's care, maintenance, services, and supplies,
6and the person's property and estate, including the homestead, and the spouse of the
7person, and the spouse's property and estate, including the homestead, and, in the
8case of a minor child, the parents of the person, and their property and estates,
9including their homestead, and, in the case of a foreign child described in s. 48.839
10(1) who became dependent on public funds for his or her primary support before an
11order granting his or her adoption, the resident of this state appointed guardian of
12the child by a foreign court who brought the child into this state for the purpose of
13adoption, and his or her property and estate, including his or her homestead, shall
14be liable for the cost of the care, maintenance, services, and supplies in accordance
15with the fee schedule established by the department under s. 49.32 (1). If a spouse,
16widow, or minor, or an incapacitated person may be lawfully dependent upon the
17property for his or her support, the court shall release all or such part of the property
18and estate from the charges that may be necessary to provide for the person. The
19department shall make every reasonable effort to notify the liable persons as soon
20as possible after the beginning of the maintenance, but the notice or the receipt
21thereof of the notice is not a condition of liability.
SB21-SSA1,1780 22Section 1780. 49.345 (8) (g) of the statutes is amended to read:
SB21-SSA1,548,2523 49.345 (8) (g) Pay quarterly from the appropriation under s. 20.437 (1) (gg) the
24collection moneys due county departments under ss. 46.215, 46.22, and 46.23.
25Payments shall be made as soon after the close of each quarter as is practicable.
SB21-SSA1,1781
1Section 1781. 49.345 (14) (b) of the statutes is amended to read:
SB21-SSA1,549,92 49.345 (14) (b) Except as provided in par. (c), and subject to par. (cm), liability
3of a parent specified in sub. (2) or s. 49.32 (1) for the care and maintenance of the
4parent's minor child who has been placed by a court order under s. 48.355 or, 48.357,
5938.183, 938.355, or 938.357
in a residential, nonmedical facility such as a group
6home, foster home, subsidized guardianship home, or residential care center for
7children and youth shall be determined by the court by using the percentage
8standard established by the department under s. 49.22 (9) and by applying the
9percentage standard in the manner established by the department under par. (g).
SB21-SSA1,1782 10Section 1782. 49.345 (14) (e) 1. of the statutes is amended to read:
SB21-SSA1,549,1911 49.345 (14) (e) 1. An order issued under s. 48.355 (2) (b) 4., 48.357 (5m) (a), or
1248.363 (2) for support determined under this subsection constitutes an assignment
13of all commissions, earnings, salaries, wages, pension benefits, income continuation
14insurance benefits under s. 40.62, duty disability benefits under s. 40.65,
benefits
15under ch. 102 or 108, and other money due or to be due in the future to the county
16department under s. 46.22 or 46.23 in the county where the order was entered or to
17the department, depending upon the placement of the child as specified by rules
18promulgated under subd. 5. The assignment shall be for an amount sufficient to
19ensure payment under the order.
SB21-SSA1,1783 20Section 1783 . 49.345 (14) (e) 1. of the statutes, as affected by 2015 Wisconsin
21Act .... (this act), is amended to read:
SB21-SSA1,550,622 49.345 (14) (e) 1. An order issued under s. 48.355 (2) (b) 4., 48.357 (5m) (a), or
2348.363 (2), 938.183 (4), 938.355 (2) (b) 4., 938.357 (5m) (a), or 938.363 (2) for support
24determined under this subsection constitutes an assignment of all commissions,
25earnings, salaries, wages, pension benefits, income continuation insurance benefits

1under s. 40.62, duty disability benefits under s. 40.65, benefits under ch. 102 or 108,
2and other money due or to be due in the future to the county department under s.
346.215, 46.22, or 46.23 in the county where the order was entered or to the
4department, depending upon the placement of the child as specified by rules
5promulgated under subd. 5. The assignment shall be for an amount sufficient to
6ensure payment under the order.
SB21-SSA1,1784 7Section 1784. 49.345 (14) (g) of the statutes is amended to read:
SB21-SSA1,550,148 49.345 (14) (g) For purposes of determining child support under par. (b), the
9department shall promulgate rules related to the application of the standard
10established by the department under s. 49.22 (9) to a child support obligation for the
11care and maintenance of a child who is placed by a court order under s. 48.355 or,
1248.357, 938.183, 938.355, or 938.357 in a residential, nonmedical facility. The rules
13shall take into account the needs of any person, including dependent children other
14than the child, whom either parent is legally obligated to support.
SB21-SSA1,1785 15Section 1785. 49.345 (16) of the statutes is amended to read:
SB21-SSA1,550,2416 49.345 (16) The department shall delegate to county departments under ss.
1746.215, 46.22, and 46.23 or the local providers of care and services meeting the
18standards established by the department under s. 49.34 the responsibilities vested
19in the department under this section for collection of fees for services other than
20those provided at state facilities, if the county departments or providers meet the
21conditions that the department determines are appropriate. The department may
22delegate to county departments under ss. 46.215, 46.22, and 46.23 the
23responsibilities vested in the department under this section for collection of fees for
24services provided at the state facilities if the necessary conditions are met.
SB21-SSA1,1785m 25Section 1785m. 49.348 of the statutes is created to read:
SB21-SSA1,551,12
149.348 Recidivism reduction program. (1) The department may request
2proposals for a program that reduces the rate of recidivism of persons in the city of
3Milwaukee who have previously been incarcerated following a criminal conviction.
4The department shall specify that the program will be conducted under a contract
5with a 5-year term and that no payment will be made under the contract until the
6organization selected to conduct the program demonstrates, after the 5-year term,
7that the program met a certain minimum level of success, as determined under subs.
8(2) and (4). The selected organization may serve as an intermediary for obtaining
9funding to perform the contract by raising capital from private donors or investors
10and for subcontracting with direct providers to achieve the specified performance
11outcomes. In evaluating proposals, the department shall give a preference to those
12that incorporate reuniting parents with their children.
SB21-SSA1,551,15 13(2) The legislative audit bureau shall assist the department and the selected
14organization in identifying benchmarks by which to measure the organization's
15performance under the contract.
SB21-SSA1,552,5 16(3) After selecting a proposal, the department shall submit a written plan for
17the program and the contract under which it will be performed to the joint committee
18on finance. The department shall include in the plan information on the selected
19proposal and organization, the methods by which the organization will finance
20startup and ongoing costs of the program during the 5-year term of the contract, the
21benchmarks identified under sub. (2), the methods by which performance will be
22monitored and measured, the levels of payment for different degrees of success, and
23any service providers that the selected organization intends to engage in order to
24deliver services under the contract. If the cochairpersons of the joint committee on
25finance do not notify the department within 14 working days after the date of the

1submittal of the plan that the committee has scheduled a meeting to review the plan,
2the plan may be implemented by the department. If, within 14 days after the date
3of the submittal of the plan, the cochairpersons of the committee notify the
4department that the committee has scheduled a meeting to review the plan, the
5department may only implement the plan as approved by the committee.
SB21-SSA1,552,8 6(4) After completion of the 5-year contract term, the legislative audit bureau
7shall conduct an audit of the program to determine whether the benchmarks
8identified under sub. (2) have been met.
SB21-SSA1,1786 9Section 1786. 49.35 (1) (a) of the statutes is amended to read:
SB21-SSA1,552,1710 49.35 (1) (a) The department shall supervise the administration of programs
11under this subchapter and ch. 48 and of community-based juvenile
12delinquency-related programs under ch. 938
. The department shall submit to the
13federal authorities state plans for the administration of programs under this
14subchapter and ch. 48 and of community-based juvenile delinquency-related
15programs under ch. 938
in such form and containing such information as the federal
16authorities require, and shall comply with all requirements prescribed to ensure
17their correctness.
SB21-SSA1,1787 18Section 1787. 49.35 (1) (b) of the statutes is amended to read:
SB21-SSA1,553,219 49.35 (1) (b) All records of the department and all county records relating to
20programs under this subchapter and ch. 48, community-based juvenile
21delinquency-related programs under ch. 938,
and aid under s. 49.18, 1971 stats., s.
2249.20, 1971 stats., and s. 49.61, 1971 stats., as affected by chapter 90, laws of 1973,
23shall be open to inspection at all reasonable hours by authorized representatives of
24the federal government. Notwithstanding ss. 48.396 (2) and 938.396 (2), all county
25records relating to the administration of the services and public assistance specified

1in this paragraph shall be open to inspection at all reasonable hours by authorized
2representatives of the department.
SB21-SSA1,1788 3Section 1788. 49.35 (2) of the statutes is amended to read:
SB21-SSA1,553,74 49.35 (2) The county administration of all laws relating to programs under this
5subchapter and ch. 48 and to community-based juvenile delinquency-related
6programs under ch. 938
shall be vested in the officers and agencies designated in the
7statutes.
SB21-SSA1,1789 8Section 1789. 49.36 (3) (a) of the statutes is amended to read:
SB21-SSA1,553,119 49.36 (3) (a) Except as provided in par. (f) and subject to sub. (3m), a person
10ordered to register under s. 767.55 (2) (am) shall participate in a work experience
11program if services are available.
SB21-SSA1,1790 12Section 1790. 49.36 (3m) of the statutes is created to read:
SB21-SSA1,553,1513 49.36 (3m) A person is not eligible to participate in a program under this
14section unless the person satisfies all of the requirements related to substance abuse
15screening, testing, and treatment under s. 49.162 that apply to the individual.
SB21-SSA1,1791p 16Section 1791p. 49.45 (3g) of the statutes is created to read:
SB21-SSA1,553,2117 49.45 (3g) Payments to federally qualified health centers. (a) For services
18provided by a federally qualified health center before July 1, 2016, to a recipient of
19the Medical Assistance program under this subchapter, the department shall
20reimburse the federally qualified health center under a payment methodology in
21effect on January 1, 2015, and in accordance with 42 USC 1396a (bb) (6).
SB21-SSA1,554,522 (b) For services provided by a federally qualified health center on or after July
231, 2016, to a recipient of the Medical Assistance program under this subchapter, the
24department shall reimburse the federally qualified health centers using a payment
25methodology based on the Medicaid prospective payment system under 42 USC

11396a (bb) (1) to (3). The department shall consult with federally qualified health
2centers in developing the payment methodology under this paragraph. The
3department shall phase-in over fiscal years 2016-17, 2017-18, and 2018-19
4payment of new rates under the payment methodology developed under this
5paragraph.
SB21-SSA1,1791r 6Section 1791r. 49.45 (3m) of the statutes is created to read:
SB21-SSA1,554,147 49.45 (3m) Disproportionate share hospital payments. (a ) Subject to par. (c)
8and notwithstanding sub. (3) (e), from the appropriations under s. 20.435 (4) (b) and
9(o), in each fiscal year, the department shall pay to hospitals that serve a
10disproportionate share of low-income patients an amount equal to the sum of
11$15,000,000, as the state share of payments, and the matching federal share of
12payments. The department may make a payment to a hospital under this subsection
13under the calculation method described in par. (b ) if the hospital meets all of the
14following criteria:
SB21-SSA1,554,15 151. The hospital is located in this state.
SB21-SSA1,554,17 162. The hospital provides a wide array of services, including services provided
17through an emergency department.
SB21-SSA1,554,20 183. The inpatient days for Medical Assistance recipients at the hospital were at
19least 6 percent of the total inpatient days at that hospital during the most recent year
20for which such information is available.
SB21-SSA1,554,23 214. The hospital meets applicable, minimum requirements to be a
22disproportionate share hospital under 42 USC 1396r-4 and any other applicable
23federal law.
SB21-SSA1,554,2524 (b) The department shall comply with all of the following when making
25payments to hospitals described in par. (a ):
SB21-SSA1,555,3
11. The department shall distribute the total amount of moneys described under
2par. (a) to be paid to hospitals with a disproportionate share of low-income patients
3by doing all of the following:
SB21-SSA1,555,6 4a. Dividing the number of Medical Assistance recipient inpatient days at a
5hospital by the number of total inpatient days at the hospital to obtain the
6percentage of Medical Assistance recipient inpatient days at that hospital.
SB21-SSA1,555,11 7b. Subject to subds. 2. and 3 ., providing an increase to the inpatient
8fee-for-service base rate for each hospital that qualifies for a disproportionate share
9hospital payment such that the hospital's overall fee-for-service add-on percentage
10under this subsection increases as the hospital's percentage of Medical Assistance
11recipient inpatient days increases.
SB21-SSA1,555,14 122. The department shall ensure that the total amount of moneys available to
13pay hospitals with a disproportionate share of low-income patients is distributed in
14each fiscal year.
SB21-SSA1,555,17 153. The department shall limit the maximum payment to hospitals such that all
16of the following are true for disproportionate share hospital payments under this
17subsection in a fiscal year:
SB21-SSA1,555,18 18a. No single hospital receives more than $2,500,000.
SB21-SSA1,555,20 19b. The amount of payment is in accordance with federal rules concerning the
20hospital specific limit.
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