AB607: Bill Text

AB607, s. 40 Section 40. 102.80 (3) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

AB607,25,23 102.80 (3) (b) If the secretary does not file the certificate under par. (a), the department may not expend the moneys in the uninsured employers fund.

AB607, s. 41 Section 41. 102.80 (3) (c) of the statutes is created to read:

AB607,26,5 102.80 (3) (c) If, after filing the certificate under par. (a), the secretary files the certificate under par. (ag), the department may expend the moneys in the uninsured employers fund only to make payments under s. 102.81 (1) to employes of uninsured employers on claims made before the date specified in that certificate and to obtain reinsurance under s. 102.81 (2) for the payment of those claims.

AB607, s. 42 Section 42. 102.80 (4) of the statutes is created to read:

AB607,26,11 102.80 (4) (a) If an uninsured employer who owes to the department any amount under s. 102.82 or 102.85 (4) transfers his or her business assets or activities, the transferee is liable for the amounts owed by the uninsured employer under s. 102.82 or 102.85 (4) if the department determines that all of the following conditions are satisfied:

AB607,26,17 1. At the time of the transfer, the uninsured employer and the transferee are owned or controlled in whole or in substantial part, either directly or indirectly, by the same interest or interests. Without limitation by reason of enumeration, it is presumed unless shown to the contrary that the "same interest or interests" includes the spouse, child or parent of the individual who owned or controlled the business, or any combination of more than one of them.

AB607,26,21 2. The transferee has continued or resumed the business of the uninsured employer, either in the same establishment or elsewhere; or the transferee has employed substantially the same employes as those the uninsured employer had employed in connection with the business assets or activities transferred.

AB607,26,25 (b) The department may collect from a transferee described in par. (a) an amount owed under s. 102.82 or 102.85 (4) using the procedures specified in ss. 102.83, 102.835 and 102.87 and the preference specified in s. 102.84 in the same manner as the department may collect from an uninsured employer.

AB607, s. 43 Section 43. 102.81 (1) (a) of the statutes is amended to read:

AB607,27,8 102.81 (1) (a) If an employe of an uninsured employer , other than an employe who is eligible to receive alternative benefits under s. 102.28 (3), suffers an injury for which the uninsured employer is liable under s. 102.03, the department or the department's reinsurer shall pay to the injured employe or the employe's dependents an amount equal to the compensation owed them by the uninsured employer under this chapter except penalties and interest due under ss. 102.16 (3), 102.18 (1) (b) and (bp), 102.22 (1), 102.35 (3), 102.57 and 102.60.

AB607, s. 44 Section 44. 102.81 (1) (b) of the statutes is amended to read:

AB607,27,14 102.81 (1) (b) The department shall make the payments required under par. (a) from the uninsured employers fund, except that if the department has obtained reinsurance under sub. (2) and is unable to make those payments from the uninsured employers fund, the department's reinsurer shall make those payments according to the terms of the contract of reinsurance.

AB607, s. 45 Section 45. 102.81 (2) of the statutes is amended to read:

AB607,28,2 102.81 (2) The department may retain an insurance carrier or insurance service organization to process, investigate and pay claims under this section and may obtain excess or stop-loss reinsurance with an insurance carrier authorized to do business in this state in an amount that the secretary determines is necessary for the sound operation of the uninsured employers fund. In cases involving disputed claims, the department may retain an attorney to represent the interests of the uninsured employers fund and to make appearances on behalf of the uninsured employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch. IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for the services retained under this subsection shall be paid from the appropriation under s. 20.445 (1) (sp). The cost of any reinsurance obtained under this subsection shall be paid from the appropriation under s. 20.445 (1) (sm).

AB607, s. 46 Section 46. 102.81 (2) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

AB607,28,16 102.81 (2) The department may retain an insurance carrier or insurance service organization to process, investigate and pay claims under this section and may obtain excess or stop-loss reinsurance with an insurance carrier authorized to do business in this state in an amount that the secretary determines is necessary for the sound operation of the uninsured employers fund. In cases involving disputed claims, the department may retain an attorney to represent the interests of the uninsured employers fund and to make appearances on behalf of the uninsured employers fund in proceedings under ss. 102.16 to 102.29. Section 20.918 and subch. IV of ch. 16 do not apply to an attorney hired under this subsection. The charges for the services retained under this subsection shall be paid from the appropriation under s. 20.445 (1) (hp). The cost of any reinsurance obtained under this subsection shall be paid from the appropriation under s. 20.445 (1) (sm).

AB607, s. 47 Section 47. 102.81 (7) of the statutes is amended to read:

AB607,28,22 102.81 (7) This section first applies to injuries occurring on the first day of the calendar quarter first July beginning after the day that the secretary files a certificate under s. 102.80 (3) (a), except that if the secretary files a certificate under s. 102.80 (3) (ag) this section does not apply to claims filed on or after the date specified in that certificate.

AB607, s. 48 Section 48. 102.83 (1) (a) of the statutes is amended to read:

AB607,29,17 102.83 (1) (a) If an uninsured employer fails to pay to the department any amount owed to the department under s. 102.82 and no appeal or other proceeding for review is pending and the time for taking an appeal has expired, the department or any authorized representative may issue a warrant directed to the clerk of circuit court for any county of the state. The clerk shall enter in the judgment docket the name of the uninsured employer mentioned in the warrant and the amount of the payments, interest, costs and other fees for which the warrant is issued and the date when the warrant is filed. A warrant so docketed shall be considered in all respects as a final judgment constituting a perfected lien on the uninsured employer's right, title and interest in all of the uninsured employer's real and personal property located in the county where the warrant is docketed. After the warrant is docketed, the department or any authorized representative may file an execution with the clerk of circuit court for filing by the clerk with the sheriff of any county where real or personal property of the uninsured employer is found, commanding the sheriff to levy upon and sell sufficient real and personal property of the uninsured employer to pay the amount stated in the warrant in the same manner as upon an execution against property issued upon the judgment of a court of record, and to return the warrant to the department and pay to it the money collected by virtue of the warrant within 60 days after receipt of the warrant.

AB607, s. 49 Section 49. 102.835 (1) (b) of the statutes is repealed.

AB607, s. 50 Section 50. 102.835 (1) (c) of the statutes is repealed.

AB607, s. 51 Section 51. 102.835 (12) of the statutes is amended to read:

AB607,30,9 102.835 (12) Notice before levy. If no appeal or other proceeding for review permitted by law is pending and the time for taking an appeal has expired, the department shall make a demand to the uninsured employer for payment of the debt which is subject to levy and give notice that the department may pursue legal action for collection of the debt against the uninsured employer. The department shall make the demand for payment and give the notice at least 10 days prior to the levy, personally or by any type of mail service which requires a signature of acceptance, at the address of the uninsured employer as it appears on the records of the department. The demand for payment and notice shall include a statement of the amount of the debt, including costs and fees, and the name of the uninsured employer who is liable for the debt. The uninsured employer's failure to accept or receive the notice does not prevent the department from making the levy. Notice prior to levy is not required for a subsequent levy on any debt of the same uninsured employer within one year after the date of service of the original levy.

AB607, s. 52 Section 52. 102.835 (16) of the statutes is repealed.

AB607, s. 53 Section 53. 102.835 (17) of the statutes is repealed.

AB607, s. 54 Section 54. 626.125 of the statutes is created to read:

AB607,30,15 626.125 Qualified loss management program. (1) Elements of program. The bureau may file with the commissioner under s. 626.13 a qualified loss management program that contains all of the following elements:

AB607,30,21 (a) 1. Subject to subd. 2., the bureau shall restrict eligibility for participation in the qualified loss management program to an employer that has obtained any insurance specified in s. 626.03, that is eligible for an experience rating under s. 626.12 (1), that is eligible for coverage under a mandatory risk-sharing plan under s. 619.01 (1) and that, as of July 1, 1995, has a rate of not less than $10 on the risk classification that generates the most manual premium for that employer.

AB607,31,3 2. Notwithstanding subd. 1., the bureau may broaden eligibility for participation in the qualified loss management program to an entire specific classification of employers that have obtained any insurance specified in s. 626.03 and that are ineligible for coverage under a mandatory risk-sharing plan under s. 619.01 (1) if the bureau determines that permitting that entire specific classification of employers to participate in the qualified loss management program is necessary to support the effective delivery of safety training to a high-risk industry.

AB607,31,7 (b) The bureau shall grant a prospective premium credit to an eligible employer that subscribes to a loss management action plan prepared by a loss management firm approved under sub. (2) that specifies the activities that the eligible employer will perform to reduce its loss experience.

AB607,31,13 (c) The bureau shall base the initial prospective premium credit granted to an eligible employer on the qualifications of the loss management firm that prepared the loss management action plan subscribed to by the eligible employer and on the improvement in the loss experience of the eligible employer anticipated by the bureau, in accordance with generally accepted actuarial principles, as a result of the loss management action plan.

AB607,31,16 (d) The bureau shall base subsequent prospective premium credits granted to an eligible employer on the aggregate loss experience of all eligible employers served by the loss management firm serving the eligible employer.

AB607,31,19 (e) The bureau shall adjust the prospective premium credits granted under pars. (c) and (d) to reflect any credits granted under s. 626.12 (1) as a result of the same improved loss experience.

AB607,32,9 (2) Approval of loss management firms. The bureau may approve a loss management firm for the purpose of preparing loss management action plans for eligible employers if the loss management firm demonstrates an ability to reduce the worker's compensation loss experiences of its clients and if the loss management firm submits a loss management program that is approved by the bureau. In reviewing the qualifications of a loss management firm, the bureau shall consider the training, experience and qualifications of the loss management firm's key personnel and the loss management firm's approach to focussing the attention of its clients on the issue of safety and to assuring and measuring the commitment of its clients to implementing safe work practices. In reviewing the loss management program of a loss management firm, the bureau shall consider the program's plan of action and techniques for assisting an injured employe in obtaining medical care, for continuing communication with the employe and monitoring his or her progress during the recuperation period and for encouraging an injured employer to return to work as soon as possible.

AB607,32,14 (3) The bureau shall report annually to the commissioner and the secretary of industry, labor and human relations on the status of the program under this section. The report shall include an evaluation of the degree of success achieved by each loss management firm approved under sub. (2) in reducing the worker's compensation loss experience of its clients participating in the program.

AB607,32,15 (4) This section does not apply after December 31, 1997.

AB607, s. 55 Section 55. Appropriation changes.

AB607,32,21 (1) Uninsured employers program administration. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of industry, labor and human relations under section 20.445 (1) (hp) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $500,000 for fiscal year 1996-97 to increase funding for the purpose for which the appropriation is made.

AB607,33,3 (2) Uninsured employers fund administration lapse. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of industry, labor and human relations under section 20.445 (1) (hp) of the statutes, as affected by the acts of 1995, the dollar amount is increased for fiscal year 1996-97 by an amount equal to the unencumbered balance in the appropriation under section 20.445 (1) (sp), 1993 stats., immediately before the effective date of the renumbering and amendment of section 20.445 (1) (sp), 1993 stats.

AB607, s. 56 Section 56 . Initial applicability.

AB607,33,7 (1) General coverage. The treatment of sections 102.07 (11m) and (12m), 102.077 and 102.29 (8) and (9) of the statutes first applies to injuries occurring on the effective date of this subsection.

AB607,33,10 (2) Certified reports. The treatment of section 102.17 (1) (d) and (7) (a), (b) and (c) of the statutes first applies to hearings noticed under section 102.17 (1) (a) of the statutes on the effective date of this subsection.

AB607,33,13 (3) Business transferee liability. The treatment of section 102.80 (4) of the statutes first applies to business asset or activities transfers that occur on the effective date of this subsection.

AB607,33,16 (4) Alternative benefits coverage. The treatment of sections 102.01 (1) (em), 102.07 (4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes first applies to injuries occurring on the effective date of this subsection.

AB607, s. 57 Section 57. Effective dates. This act takes effect on January 1, 1996, or on the day after publication, whichever is later, except as follows:

AB607,33,21 (1) Alternative benefits. The treatment of sections 102.01 (1) (em), 102.07 (4m) and (5) (d), 102.16 (5) and 102.28 (2) (a) and (3) of the statutes and Section 56 (4) of this act take effect on the day after publication.

AB607,33,24 (2) Uninsured employers program administration. The treatment of section 20.445 (1) (sp) of the statutes and the repeal and recreation of sections 20.445 (1) (ha), 102.80 (3) (b) and 102.81 (2) of the statutes take effect on July 1, 1996.

AB607,33,25 (End)