AB607,19,1413 1. The employe has waived all compensation under this chapter other than the
14alternative benefits provided under par. (c).
AB607,19,1815 2. The employe is a member of a religious sect whose established tenets or
16teachings oppose accepting the benefits of insurance as described in par. (a) 2. and
17that, as a result of adherence to those tenets or teachings, the employe
18conscientiously opposes accepting those benefits.
AB607,20,219 3. The religious sect to which the employe belongs has a long-established
20history of providing its members who become dependent on the religious sect as a
21result of work-related injuries, and the dependents of those members, with a
22standard of living and medical treatment that are reasonable when compared to the
23general standard of living and medical treatment for members of the religious sect.
24In determining whether the religious sect has a long-standing history of providing
25the financial and medical assistance described in this subdivision, the department

1shall presume that a 25-year history of providing that financial and medical
2assistance is long-standing for purposes of this subdivision.
AB607,20,83 4. The religious sect to which the employe belongs has agreed to provide the
4financial and medical assistance described in subd. 3. to the employe and to the
5dependents of the employe if the employe sustains an injury that, but for the waiver
6under par. (a) 1., the employer would be liable for under s. 102.03 and that the
7religious sect has the financial ability to provide that financial and medical
8assistance.
AB607,21,29 (c) An employe who has signed a waiver under par. (a) 1. and an affidavit under
10par. (a) 2., who sustains an injury that, but for that waiver, the employer would be
11liable for under s. 102.03, who at the time of the injury was a member of a religious
12sect whose authorized representative has filed an affidavit under par. (a) 3. and an
13agreement and proof of financial responsibility under par. (a) 4. and who as a result
14of the injury becomes dependent on the religious sect for financial and medical
15assistance, or the employe's dependent, may request a hearing under s. 102.17 (1) to
16determine if the religious sect has provided the employe and his or her dependents
17with a standard of living and medical treatment that are reasonable when compared
18to the general standard of living and medical treatment for members of the religious
19sect. If, after hearing, the department determines that the religious sect has not
20provided that standard of living or medical treatment, or both, the department may
21order the religious sect to provide alternative benefits to that employe or his or her
22dependent, or both, in an amount that is reasonable under the circumstances, but
23not in excess of the benefits that the employe or dependent could have received under
24this chapter but for the waiver under par. (a) 1. If the religious sect does not provide
25the alternative benefits as ordered by the department, the department may use the

1financial commitment under par. (a) 4. to pay the alternative benefits ordered,
2including any penalties that may be appropriate.
AB607,21,83 (d) The department shall provide a form for the application for exemption of an
4employer under par. (a) (intro.), the waiver and affidavit of an employe under par. (a)
51. and 2., the affidavit of a religious sect under par. (a) 3. and the agreement and proof
6of financial responsibility of a religious sect under par. (a) 4. A properly completed
7form is prima facie evidence of satisfaction of the conditions under par. (b) as to the
8matter contained in the form.
AB607, s. 25 9Section 25. 102.29 (8) of the statutes is created to read:
AB607,21,1610 102.29 (8) No student of a public school, as described in s. 115.01 (1), or a private
11school, as defined in s. 115.001 (3r), who is named under s. 102.077 as an employe
12of the school district or private school for purposes of this chapter and who makes a
13claim for compensation under this chapter may make a claim or maintain an action
14in tort against the employer that provided the work training or work experience from
15which the claim arose. This subsection does not apply to injuries occurring after
16December 31, 1997.
AB607, s. 26 17Section 26. 102.29 (9) of the statutes is created to read:
AB607,21,2518 102.29 (9) No participant in a work experience component of a job opportunities
19and basic skills program who, under s. 49.193 (6) (a), is considered to be an employe
20of the agency administering that program, or who, under s. 49.193 (6) (a), is provided
21worker's compensation coverage by the person administering the work experience
22component, and who makes a claim for compensation under this chapter may make
23a claim or maintain an action in tort against the employer who provided the work
24experience from which the claim arose. This subsection does not apply to injuries
25occurring after December 31, 1997.
AB607, s. 27
1Section 27. 102.33 (2) (b) (intro.) of the statutes is amended to read:
AB607,22,122 102.33 (2) (b) (intro.) Notwithstanding par. (a), a record maintained by the
3department that reveals the identity of an employe who claims worker's
4compensation benefits, the nature of the employe's claimed injury, the employe's past
5or present medical condition, the extent of the employe's disability, the amount, type
6or duration of benefits paid to the employe or any financial information provided to
7the department by a self-insured employer or by an applicant for exemption under
8s. 102.28 (2) (b) is confidential and not open to public inspection or copying under s.
919.35 (1). The department may deny a request made under s. 19.35 (1) or, subject to
10s. 102.17 (2m) and (2s), refuse to honor a subpoena issued by an attorney of record
11in a civil or criminal action or special proceeding
to inspect and copy a record that is
12confidential under this paragraph, unless one of the following applies:
AB607, s. 28 13Section 28. 102.33 (2) (b) 2. of the statutes is amended to read:
AB607,22,2414 102.33 (2) (b) 2. The record that is requested contains confidential information
15concerning a worker's compensation claim and the requester is an insurance carrier
16or employer that is a party to the claim any worker's compensation claim involving
17the same employe
or an attorney or authorized agent of that insurance carrier or
18employer, except that the department is not required to do a random search of its
19records and may require the requester to provide the approximate date of the injury
20and any other relevant information that would assist the department in finding the
21record requested
. An attorney or authorized agent of an insurance carrier or
22employer that is a party to an employe's worker's compensation claim shall provide
23a written authorization for inspection and copying from the insurance carrier or
24employer if requested by the department.
AB607, s. 29 25Section 29. 102.33 (2) (b) 4. of the statutes is created to read:
AB607,23,2
1102.33 (2) (b) 4. A court of competent jurisdiction in this state orders the
2department to release the record.
AB607, s. 30 3Section 30. 102.44 (1) (a) of the statutes is amended to read:
AB607,23,64 102.44 (1) (a) If such employe is receiving the maximum weekly benefits in
5effect at the time of the injury, the supplemental benefit shall be an amount which,
6when added to the regular benefit established for the case, shall equal $125 $150.
AB607, s. 31 7Section 31. 102.44 (1) (b) of the statutes is amended to read:
AB607,23,128 102.44 (1) (b) If such employe is receiving a weekly benefit which is less than
9the maximum benefit which was in effect on the date of the injury, the supplemental
10benefit shall be an amount sufficient to bring the total weekly benefits to the same
11proportion of $125 $150 as the employe's weekly benefit bears to the maximum in
12effect on the date of injury.
AB607, s. 32 13Section 32. 102.50 of the statutes is amended to read:
AB607,23,16 14102.50 Burial expenses. In all cases where death of an employe proximately
15results from the injury the employer or insurer shall pay the reasonable expense for
16burial, not exceeding $4,000 $6,000.
AB607, s. 33 17Section 33. 102.65 (3) (a) of the statutes is repealed.
AB607, s. 34 18Section 34. 102.65 (3) (b) of the statutes is renumbered 102.65 (3) and
19amended to read:
AB607,23,2520 102.65 (3) If the balance in the fund on any June 30 exceeds 3 times the amount
21paid out of such fund during the fiscal year ending on such date, the department
22shall, by order, direct an appropriate proportional reduction of the payments into
23such fund under ss. 102.47, 102.49 and 102.59 so that the balance in the fund will
24remain at 3 times the payments made in the preceding fiscal year. This paragraph
25applies after June 30, 1992.
AB607, s. 35
1Section 35. 102.75 (4) of the statutes is amended to read:
AB607,24,62 102.75 (4) From the appropriation under s. 20.445 (1) (ha), the department
3shall allocate the amounts that it collects in application fees from employers
4applying for exemption under s. 102.28 (2) and the annual amount that it collects
5from employers that have been exempted under s. 102.28 (2)
to fund the activities
6of the department under s. 102.28 (2) (b) and (c).
AB607, s. 36 7Section 36. 102.80 (3) (a) of the statutes is amended to read:
AB607,24,198 102.80 (3) (a) If the cash balance in the uninsured employers fund equals or
9exceeds $4,000,000 before July 1, 1996, and if, during the 6-month period
10immediately preceding the date on which the fund first equals or exceeds that cash
11balance or during any 6-month period after that date, the amounts specified in s.
12102.81 (1) collected by the department equal or exceed 55% of the amounts assessed
13by the department under s. 102.82 during that 6-month period
, the secretary shall
14consult the council on worker's compensation within 45 days after those goals are
15achieved
that cash balance equals or exceeds $4,000,000. The secretary may file with
16the secretary of administration, within 15 days after consulting the council on
17worker's compensation, a certificate attesting that the goals specified in this
18paragraph have been achieved
cash balance in the uninsured employers fund equals
19or exceeds $4,000,000
.
AB607, s. 37 20Section 37. 102.80 (3) (ag) of the statutes is created to read:
AB607,25,821 102.80 (3) (ag) The secretary shall monitor the cash balance in, and incurred
22losses to, the uninsured employers fund using generally accepted actuarial
23principles. If the secretary determines that the expected ultimate losses to the
24uninsured employers fund on known claims and on incurred, but not reported, claims
25exceed 85% of the cash balance in the uninsured employers fund, the secretary shall

1consult with the council on worker's compensation. If the secretary, after consulting
2with the council on worker's compensation, determines that there is a reasonable
3likelihood that the cash balance in the uninsured employers fund may become
4inadequate to fund all claims under s. 102.81 (1), the secretary shall file with the
5secretary of administration a certificate attesting that the cash balance in the
6uninsured employer's fund is likely to become inadequate to fund all claims under
7s. 102.81 (1) and specifying a date after which no new claims under s. 102.81 (1) will
8be paid.
AB607, s. 38 9Section 38. 102.80 (3) (am) of the statutes is amended to read:
AB607,25,1510 102.80 (3) (am) If the secretary files the certificate under par. (a) before August
1115, 1996
, the department may expend the moneys in the uninsured employers fund
12to make payments under s. 102.81 (1) to employes of uninsured employers and to
13administer ss. 102.28 (4) and 102.80 to 102.89
, beginning on the first day of the first
14July after the secretary files that certificate, to make payments under s. 102.81 (1)
15to employes of uninsured employers and to obtain reinsurance under s. 102.81 (2)
.
AB607, s. 39 16Section 39. 102.80 (3) (b) of the statutes is amended to read:
AB607,25,1917 102.80 (3) (b) If the secretary does not file the certificate under par. (a) before
18August 15, 1996
, the department may expend the moneys in the uninsured
19employers fund only to administer ss. 102.28 (4) and 102.80 to 102.89.
AB607, s. 40 20Section 40. 102.80 (3) (b) of the statutes, as affected by 1995 Wisconsin Act ....
21(this act), is repealed and recreated to read:
AB607,25,2322 102.80 (3) (b) If the secretary does not file the certificate under par. (a), the
23department may not expend the moneys in the uninsured employers fund.
AB607, s. 41 24Section 41. 102.80 (3) (c) of the statutes is created to read:
AB607,26,5
1102.80 (3) (c) If, after filing the certificate under par. (a), the secretary files the
2certificate under par. (ag), the department may expend the moneys in the uninsured
3employers fund only to make payments under s. 102.81 (1) to employes of uninsured
4employers on claims made before the date specified in that certificate and to obtain
5reinsurance under s. 102.81 (2) for the payment of those claims.
AB607, s. 42 6Section 42. 102.80 (4) of the statutes is created to read:
AB607,26,117 102.80 (4) (a) If an uninsured employer who owes to the department any
8amount under s. 102.82 or 102.85 (4) transfers his or her business assets or activities,
9the transferee is liable for the amounts owed by the uninsured employer under s.
10102.82 or 102.85 (4) if the department determines that all of the following conditions
11are satisfied:
AB607,26,1712 1. At the time of the transfer, the uninsured employer and the transferee are
13owned or controlled in whole or in substantial part, either directly or indirectly, by
14the same interest or interests. Without limitation by reason of enumeration, it is
15presumed unless shown to the contrary that the "same interest or interests" includes
16the spouse, child or parent of the individual who owned or controlled the business,
17or any combination of more than one of them.
AB607,26,2118 2. The transferee has continued or resumed the business of the uninsured
19employer, either in the same establishment or elsewhere; or the transferee has
20employed substantially the same employes as those the uninsured employer had
21employed in connection with the business assets or activities transferred.
AB607,26,2522 (b) The department may collect from a transferee described in par. (a) an
23amount owed under s. 102.82 or 102.85 (4) using the procedures specified in ss.
24102.83, 102.835 and 102.87 and the preference specified in s. 102.84 in the same
25manner as the department may collect from an uninsured employer.
AB607, s. 43
1Section 43. 102.81 (1) (a) of the statutes is amended to read:
AB607,27,82 102.81 (1) (a) If an employe of an uninsured employer , other than an employe
3who is eligible to receive alternative benefits under s. 102.28 (3),
suffers an injury for
4which the uninsured employer is liable under s. 102.03, the department or the
5department's reinsurer
shall pay to the injured employe or the employe's dependents
6an amount equal to the compensation owed them by the uninsured employer under
7this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) and
8(bp), 102.22 (1), 102.35 (3), 102.57 and 102.60.
AB607, s. 44 9Section 44. 102.81 (1) (b) of the statutes is amended to read:
AB607,27,1410 102.81 (1) (b) The department shall make the payments required under par.
11(a) from the uninsured employers fund, except that if the department has obtained
12reinsurance under sub. (2) and is unable to make those payments from the uninsured
13employers fund, the department's reinsurer shall make those payments according to
14the terms of the contract of reinsurance
.
AB607, s. 45 15Section 45. 102.81 (2) of the statutes is amended to read:
AB607,28,216 102.81 (2) The department may retain an insurance carrier or insurance
17service organization to process, investigate and pay claims under this section and
18may obtain excess or stop-loss reinsurance with an insurance carrier authorized to
19do business in this state in an amount that the secretary determines is necessary for
20the sound operation of the uninsured employers fund
. In cases involving disputed
21claims, the department may retain an attorney to represent the interests of the
22uninsured employers fund and to make appearances on behalf of the uninsured
23employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch.
24IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for
25the services retained under this subsection shall be paid from the appropriation

1under s. 20.445 (1) (sp). The cost of any reinsurance obtained under this subsection
2shall be paid from the appropriation under s. 20.445 (1) (sm).
AB607, s. 46 3Section 46. 102.81 (2) of the statutes, as affected by 1995 Wisconsin Act ....
4(this act), is repealed and recreated to read:
AB607,28,165 102.81 (2) The department may retain an insurance carrier or insurance
6service organization to process, investigate and pay claims under this section and
7may obtain excess or stop-loss reinsurance with an insurance carrier authorized to
8do business in this state in an amount that the secretary determines is necessary for
9the sound operation of the uninsured employers fund. In cases involving disputed
10claims, the department may retain an attorney to represent the interests of the
11uninsured employers fund and to make appearances on behalf of the uninsured
12employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch.
13IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for
14the services retained under this subsection shall be paid from the appropriation
15under s. 20.445 (1) (hp). The cost of any reinsurance obtained under this subsection
16shall be paid from the appropriation under s. 20.445 (1) (sm).
AB607, s. 47 17Section 47. 102.81 (7) of the statutes is amended to read:
AB607,28,2218 102.81 (7) This section first applies to injuries occurring on the first day of the
19calendar quarter first July beginning after the day that the secretary files a
20certificate under s. 102.80 (3) (a), except that if the secretary files a certificate under
21s. 102.80 (3) (ag) this section does not apply to claims filed on or after the date
22specified in that certificate
.
AB607, s. 48 23Section 48. 102.83 (1) (a) of the statutes is amended to read:
AB607,29,1724 102.83 (1) (a) If an uninsured employer fails to pay to the department any
25amount owed to the department under s. 102.82 and no appeal or other proceeding

1for review is pending and the time for taking an appeal has expired, the department
2or any authorized representative may issue a warrant directed to the clerk of circuit
3court for any county of the state. The clerk shall enter in the judgment docket the
4name of the uninsured employer mentioned in the warrant and the amount of the
5payments, interest, costs and other fees for which the warrant is issued and the date
6when the warrant is filed. A warrant so docketed shall be considered in all respects
7as a final judgment constituting a perfected lien on the uninsured employer's right,
8title and interest in all of the uninsured employer's real and personal property
9located in the county where the warrant is docketed. After the warrant is docketed,
10the department or any authorized representative may file an execution with the
11clerk of circuit court for filing by the clerk with the sheriff of any county where real
12or personal property of the uninsured employer is found, commanding the sheriff to
13levy upon and sell sufficient real and personal property of the uninsured employer
14to pay the amount stated in the warrant in the same manner as upon an execution
15against property issued upon the judgment of a court of record, and to return the
16warrant to the department and pay to it the money collected by virtue of the warrant
17within 60 days after receipt of the warrant.
AB607, s. 49 18Section 49. 102.835 (1) (b) of the statutes is repealed.
AB607, s. 50 19Section 50. 102.835 (1) (c) of the statutes is repealed.
AB607, s. 51 20Section 51. 102.835 (12) of the statutes is amended to read:
AB607,30,921 102.835 (12) Notice before levy. If no appeal or other proceeding for review
22permitted by law is pending and the time for taking an appeal has expired, the
23department shall make a demand to the uninsured employer for payment of the debt
24which is subject to levy and give notice that the department may pursue legal action
25for collection of the debt against the uninsured employer. The department shall

1make the demand for payment and give the notice at least 10 days prior to the levy,
2personally or by any type of mail service which requires a signature of acceptance,
3at the address of the uninsured employer as it appears on the records of the
4department. The demand for payment and notice shall include a statement of the
5amount of the debt, including costs and fees, and the name of the uninsured employer
6who is liable for the debt. The uninsured employer's failure to accept or receive the
7notice does not prevent the department from making the levy. Notice prior to levy
8is not required for a subsequent levy on any debt of the same uninsured employer
9within one year after the date of service of the original levy.
AB607, s. 52 10Section 52. 102.835 (16) of the statutes is repealed.
AB607, s. 53 11Section 53. 102.835 (17) of the statutes is repealed.
AB607, s. 54 12Section 54. 626.125 of the statutes is created to read:
AB607,30,15 13626.125 Qualified loss management program. (1) Elements of program.
14The bureau may file with the commissioner under s. 626.13 a qualified loss
15management program that contains all of the following elements:
AB607,30,2116 (a) 1. Subject to subd. 2., the bureau shall restrict eligibility for participation
17in the qualified loss management program to an employer that has obtained any
18insurance specified in s. 626.03, that is eligible for an experience rating under s.
19626.12 (1), that is eligible for coverage under a mandatory risk-sharing plan under
20s. 619.01 (1) and that, as of July 1, 1995, has a rate of not less than $10 on the risk
21classification that generates the most manual premium for that employer.
AB607,31,322 2. Notwithstanding subd. 1., the bureau may broaden eligibility for
23participation in the qualified loss management program to an entire specific
24classification of employers that have obtained any insurance specified in s. 626.03
25and that are ineligible for coverage under a mandatory risk-sharing plan under s.

1619.01 (1) if the bureau determines that permitting that entire specific classification
2of employers to participate in the qualified loss management program is necessary
3to support the effective delivery of safety training to a high-risk industry.
AB607,31,74 (b) The bureau shall grant a prospective premium credit to an eligible employer
5that subscribes to a loss management action plan prepared by a loss management
6firm approved under sub. (2) that specifies the activities that the eligible employer
7will perform to reduce its loss experience.
AB607,31,138 (c) The bureau shall base the initial prospective premium credit granted to an
9eligible employer on the qualifications of the loss management firm that prepared
10the loss management action plan subscribed to by the eligible employer and on the
11improvement in the loss experience of the eligible employer anticipated by the
12bureau, in accordance with generally accepted actuarial principles, as a result of the
13loss management action plan.
AB607,31,1614 (d) The bureau shall base subsequent prospective premium credits granted to
15an eligible employer on the aggregate loss experience of all eligible employers served
16by the loss management firm serving the eligible employer.
AB607,31,1917 (e) The bureau shall adjust the prospective premium credits granted under
18pars. (c) and (d) to reflect any credits granted under s. 626.12 (1) as a result of the
19same improved loss experience.
AB607,32,9 20(2) Approval of loss management firms. The bureau may approve a loss
21management firm for the purpose of preparing loss management action plans for
22eligible employers if the loss management firm demonstrates an ability to reduce the
23worker's compensation loss experiences of its clients and if the loss management firm
24submits a loss management program that is approved by the bureau. In reviewing
25the qualifications of a loss management firm, the bureau shall consider the training,

1experience and qualifications of the loss management firm's key personnel and the
2loss management firm's approach to focussing the attention of its clients on the issue
3of safety and to assuring and measuring the commitment of its clients to
4implementing safe work practices. In reviewing the loss management program of a
5loss management firm, the bureau shall consider the program's plan of action and
6techniques for assisting an injured employe in obtaining medical care, for continuing
7communication with the employe and monitoring his or her progress during the
8recuperation period and for encouraging an injured employer to return to work as
9soon as possible.
AB607,32,14 10(3) The bureau shall report annually to the commissioner and the secretary of
11industry, labor and human relations on the status of the program under this section.
12The report shall include an evaluation of the degree of success achieved by each loss
13management firm approved under sub. (2) in reducing the worker's compensation
14loss experience of its clients participating in the program.
AB607,32,15 15(4) This section does not apply after December 31, 1997.
AB607, s. 55 16Section 55. Appropriation changes.
AB607,32,21 17(1) Uninsured employers program administration. In the schedule under
18section 20.005 (3) of the statutes for the appropriation to the department of industry,
19labor and human relations under section 20.445 (1) (hp) of the statutes, as affected
20by the acts of 1995, the dollar amount is increased by $500,000 for fiscal year 1996-97
21to increase funding for the purpose for which the appropriation is made.
AB607,33,3 22(2) Uninsured employers fund administration lapse. In the schedule under
23section 20.005 (3) of the statutes for the appropriation to the department of industry,
24labor and human relations under section 20.445 (1) (hp) of the statutes, as affected
25by the acts of 1995, the dollar amount is increased for fiscal year 1996-97 by an

1amount equal to the unencumbered balance in the appropriation under section
220.445 (1) (sp), 1993 stats., immediately before the effective date of the renumbering
3and amendment of section 20.445 (1) (sp), 1993 stats.
AB607, s. 56 4Section 56 . Initial applicability.
AB607,33,7 5(1) General coverage. The treatment of sections 102.07 (11m) and (12m),
6102.077 and 102.29 (8) and (9) of the statutes first applies to injuries occurring on
7the effective date of this subsection.
AB607,33,10 8(2) Certified reports. The treatment of section 102.17 (1) (d) and (7) (a), (b)
9and (c) of the statutes first applies to hearings noticed under section 102.17 (1) (a)
10of the statutes on the effective date of this subsection.
AB607,33,13 11(3) Business transferee liability. The treatment of section 102.80 (4) of the
12statutes first applies to business asset or activities transfers that occur on the
13effective date of this subsection.
AB607,33,16 14(4) Alternative benefits coverage. The treatment of sections 102.01 (1) (em),
15102.07 (4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes first
16applies to injuries occurring on the effective date of this subsection.
AB607, s. 57 17Section 57. Effective dates. This act takes effect on January 1, 1996, or on
18the day after publication, whichever is later, except as follows:
AB607,33,21 19(1) Alternative benefits. The treatment of sections 102.01 (1) (em), 102.07
20(4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes and Section 56
21(4) of this act take effect on the day after publication.
AB607,33,24 22(2) Uninsured employers program administration. The treatment of section
2320.445 (1) (sp) of the statutes and the repeal and recreation of sections 20.445 (1) (ha),
24102.80 (3) (b) and 102.81 (2) of the statutes take effect on July 1, 1996.
AB607,33,2525 (End)
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