AB11: Bill Text

LRB-1110/1

PJK:kaf:jlb

1997 - 1998 LEGISLATURE

1997 Assembly BILL 11

January 28, 1997 - Introduced by Representatives Ourada, Ainsworth, Baumgart, Bock, Boyle, Dobyns, Freese, Goetsch, Gronemus, Gunderson, Hasenohrl, Huber, Kaufert, Ladwig, F. Lasee, Lazich, M. Lehman, Musser, Notestein, Olsen, Ott, Plale, Ryba, Seratti, Springer, Sykora, Turner, Wasserman, R. Young, Zukowski, R. Potter and Powers, cosponsored by Senators Breske, Wirch, Buettner, Cowles, Decker and Grobschmidt. Referred to Committee on Insurance, Securities and Corporate Policy.

AB11,1,6 An Act to amend 109.07 (1m); and to create 601.41 (7) of the statutes; relating to: requiring the office of the commissioner of insurance to provide information and technical assistance to employes and former employes who lose health care coverage and requiring information about an employe benefit plan in the notice to the department of industry, labor and job development before a business closing or mass layoff.

Analysis by the Legislative Reference Bureau

This bill requires the office of the commissioner of insurance (OCI) to provide information and technical assistance regarding continuation and conversion coverage options and the availability of individual health insurance plans in the area to employes and former employes who have lost health care coverage under a group health insurance plan or self-insured health plan. This situation would most commonly arise as a result of a loss of jobs from a business closing or layoffs, or if an employer discontinued health care coverage for its employes.

Under current law, an employer that has decided on a business closing or a mass layoff must provide notice of that action to, among others, any affected employe and the department of industry, labor and job development (DILJD). The notice must include information concerning the employer's payroll, the affected employes and the wages owed to those employes. DILJD must provide a copy of the notice to the department of commerce and cooperate with the department of commerce in the performance of responsibilities it has under the statutes to provide certain types of assistance to the employer and affected employes. The bill requires the notice that the employer must provide to DILJD to include information about any employe benefit plan provided by the employer. DILJD must provide a copy of the notice to OCI, in addition to the department of commerce, and must cooperate with OCI in the performance of its responsibilities created in the bill related to providing information and technical assistance regarding health insurance options and plans available to affected employes.

For further information see the state 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:

AB11, s. 1 Section 1. 109.07 (1m) of the statutes is amended to read:

AB11,3,2 109.07 (1m) Subject to sub. (5) or (6), an employer who has decided upon a business closing or mass layoff in this state shall promptly notify the subunit of the department that administers s. 106.15, any affected employe, any collective bargaining representative of any affected employe, and the highest official of any municipality in which the affected employment site is located, in writing of such action no later than 60 days prior to the date that the business closing or mass layoff takes place. The employer shall provide in writing all information concerning its payroll, any employe benefit plan provided by the employer, affected employes and the wages and other remuneration owed to such employes as the department may require. The department may in addition require the employer to submit a plan setting forth the manner in which final payment in full shall be made to affected employes. The department shall promptly provide a copy of the notice required under this subsection to the department of commerce and to the office of the commissioner of insurance and shall cooperate with the department of commerce in the performance of its responsibilities under s. 560.15 and with the office of the commissioner of insurance in the performance of its responsibilities under s. 601.41 (7). This subsection does not apply to a business closing or mass layoff that is caused by a strike or lockout.

AB11, s. 2 Section 2. 601.41 (7) of the statutes is created to read:

AB11,3,8 601.41 (7) Information and technical assistance to employes and former employes who lose health care coverage. The commissioner shall provide to employes and former employes who lose health care coverage under a group health insurance plan or self-insured health plan information and technical assistance regarding all of the following:

AB11,3,10 (a) Any rights that the individuals may have to continuation coverage, as defined in s. 252.16 (1) (a), or conversion coverage under s. 632.897.

AB11,3,12 (b) The availability of individual health benefit plans in the area in which the individual resides.

AB11,3,13 (End)