LRB-0069/1
DAK:kmg:km
1995 - 1996 LEGISLATURE
February 28, 1995 - Introduced by Representatives R. Young, Urban, Robson,
Bock, Ziegelbauer, Boyle, Plombon, Notestein, Baldwin
and Springer,
cosponsored by Senator Decker. Referred to Committee on Health.
AB165,1,3 1An Act to amend 150.613 (1); and to create 150.01 (17m) and 150.61 (6) of the
2statutes; relating to: requiring capital expenditure review of certain hospital
3operating leases.
Analysis by the Legislative Reference Bureau
Under current law, persons must hold a public hearing and obtain approval
from the cost containment commission, under a process that is known as "capital
expenditure review", before doing certain things that expand health care services or
involve expenditures that are above a specified level. Specifically, the cost
containment commission must first approve obligating a capital expenditure of more
than $1,000,000 for a hospital; implementing new hospital services of more than
$500,000 in a 12-month period; obligating an expenditure of more than $500,000 for
clinical medical equipment; purchasing or otherwise acquiring a hospital; or
constructing or operating an ambulatory surgery center or a home health agency. In
addition, persons are prohibited from subdividing projects to avoid these
requirements.
This bill prohibits persons who have not obtained cost containment commission
approval under the capital expenditure review process from obligating, for a
hospital, for an initial operating lease that has a present value of $1,000,000 or more.
The bill also prohibits persons from obligating without this approval for an initial or
renewed operating lease that subdivides a project. The bill first applies to operating
leases that are entered into or renewed on the date that the bill becomes law.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB165, s. 1
1Section 1. 150.01 (17m) of the statutes is created to read:
AB165,2,22 150.01 (17m) "Present value" has the meaning given in s. 411.103 (1) (u).
AB165, s. 2 3Section 2. 150.61 (6) of the statutes is created to read:
AB165,2,64 150.61 (6) Obligate by or on behalf of a hospital for an initial operating lease,
5the present value of which meets or exceeds $1,000,000, or obligate for an initial
6operating lease or for a renewed operating lease that is in violation of s. 150.81 (2m).
AB165, s. 3 7Section 3. 150.613 (1) of the statutes is amended to read:
AB165,2,108 150.613 (1) Section 150.61 (1) to (5) does not apply if a person has, prior to July
91, 1993, entered into a legally enforceable contract, promise or agreement with
10another to do any of the activities specified in s. 150.61 (1) to (5).
AB165, s. 4 11Section 4. Initial applicability.
AB165,2,13 12(1) Operating leases. This act first applies to operating leases that are initially
13entered into or are renewed on the effective date of this subsection.
AB165,2,1414 (End)
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