The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB238, s. 1 1Section 1. 13.94 (1) (de) of the statutes is amended to read:
SB238,2,42 13.94 (1) (de) At least once every 3 years, perform a financial audit of the state
3life insurance fund, the local government property insurance fund, and the patients
4injured patients and families compensation fund.
SB238, s. 2 5Section 2. 15.405 (7) (c) of the statutes is amended to read:
SB238,2,86 15.405 (7) (c) The chairperson of the patients injured patients and families
7compensation fund peer review council under s. 655.275 shall serve as a nonvoting
8member of the medical examining board.
SB238, s. 3 9Section 3. 20.145 (2) (title) of the statutes is amended to read:
SB238,2,1010 20.145 (2) (title) Patients Injured patients and families compensation fund.
SB238, s. 4 11Section 4. 20.145 (2) (q) of the statutes is amended to read:
SB238,3,312 20.145 (2) (q) Interest earned on future medical expenses. From the patients
13injured patients and families compensation fund under s. 655.27 a sum sufficient
14equal to the interest earned by the patients injured patients and families
15compensation fund that is attributable to future medical expense payments held by

1the fund under s. 655.015, to be credited to individual claimants' future medical
2expense payments accounts as provided in s. 655.015, for the purpose of paying
3future medical expenses.
SB238, s. 5 4Section 5. 20.145 (2) (u) of the statutes is amended to read:
SB238,3,95 20.145 (2) (u) Administration. From the patients injured patients and families
6compensation fund under s. 655.27 (3), the amounts in the schedule for
7administration, except for costs of the patients injured patients and families
8compensation fund peer review council and its associated administrative costs
9assessed under s. 655.27 (3) (am).
SB238, s. 6 10Section 6. 20.145 (2) (um) of the statutes is amended to read:
SB238,3,1411 20.145 (2) (um) Peer review council. From the patients injured patients and
12families
compensation fund under s. 655.27 (3) (am), the amounts in the schedule for
13payment of costs, including costs of administration, incurred by the patients injured
14patients and families
compensation fund peer review council under s. 655.275 (5).
SB238, s. 7 15Section 7. 20.145 (2) (v) of the statutes is amended to read:
SB238,3,2216 20.145 (2) (v) Specified responsibilities, investment board payments, and future
17medical expenses.
After deducting the amounts appropriated under pars. (q), (u), and
18(um), the balance of the moneys paid into the patients injured patients and families
19compensation fund under s. 655.27 (3) to carry out the responsibilities of the
20commissioner of insurance specified under s. 655.27, excluding payment of expenses
21related to administering the fund, to make payments to the investment board under
22s. 20.536, and to pay future medical expenses under s. 655.015.
SB238, s. 8 23Section 8. 25.14 (1) (a) 9. of the statutes is amended to read:
SB238,3,2424 25.14 (1) (a) 9. The patients injured patients and families compensation fund.
SB238, s. 9 25Section 9. 25.17 (1) (kp) of the statutes is amended to read:
SB238,4,2
125.17 (1) (kp) Patients Injured patients and families compensation fund (s.
2655.27);
SB238, s. 10 3Section 10. 25.17 (3) (a) of the statutes is amended to read:
SB238,4,104 25.17 (3) (a) Invest the fixed retirement investment trust, state life fund,
5veterans trust fund, and patients injured patients and families compensation fund
6in loans, securities, and any other investments authorized by s. 620.22, and in bonds
7or other evidences of indebtedness or preferred stock of companies engaged in the
8finance business whether as direct lenders or as holding companies owning
9subsidiaries engaged in the finance business. Investments permitted by sub. (4) are
10permitted investments under this subsection.
SB238, s. 11 11Section 11. 50.37 (intro.) of the statutes is amended to read:
SB238,4,15 1250.37 Notification to accrediting organization. (intro.) The department
13shall notify a private accrediting organization that has accredited a hospital and the
14board of governors of the patients injured patients and families compensation fund
15under s. 619.04 (3) if the department has done any of the following:
SB238, s. 12 16Section 12. 165.25 (6) (a) of the statutes is amended to read:
SB238,5,1317 165.25 (6) (a) At the request of the head of any department of state government,
18the attorney general may appear for and defend any state department, or any state
19officer, employee, or agent of the department in any civil action or other matter
20brought before a court or an administrative agency which is brought against the state
21department, or officer, employee, or agent for or on account of any act growing out
22of or committed in the lawful course of an officer's, employee's, or agent's duties.
23Witness fees or other expenses determined by the attorney general to be reasonable
24and necessary to the defense in the action or proceeding shall be paid as provided for
25in s. 885.07. The attorney general may compromise and settle the action as the

1attorney general determines to be in the best interest of the state. Members, officers,
2and employees of the Wisconsin state agencies building corporation and the
3Wisconsin state public building corporation are covered by this section. Members of
4the board of governors created under s. 619.04 (3), members of a committee or
5subcommittee of that board of governors, members of the patients injured patients
6and families
compensation fund peer review council created under s. 655.275 (2), and
7persons consulting with that council under s. 655.275 (5) (b) are covered by this
8section with respect to actions, claims, or other matters arising before, on, or after
9April 25, 1990. The attorney general may compromise and settle claims asserted
10before such actions or matters formally are brought or may delegate such authority
11to the department of administration. This paragraph may not be construed as a
12consent to sue the state or any department thereof or as a waiver of state sovereign
13immunity.
SB238, s. 13 14Section 13. 619.04 (5) (b) of the statutes is amended to read:
SB238,5,2415 619.04 (5) (b) A rating plan which takes into consideration the loss and expense
16experience of the individual health care provider which resulted in the payment of
17money, by the plan or other sources, for damages arising out of the rendering of
18health care by the health care provider or an employee of the health care provider,
19except that an adjustment to a health care provider's premiums may not be made
20under this paragraph prior to the receipt of the recommendation of the patients
21injured patients and families compensation fund peer review council under s.
22655.275 (5) (a) and the expiration of the time period provided, under s. 655.275 (7),
23for the health care provider to comment or prior to the expiration of the time period
24under s. 655.275 (5) (a).
SB238, s. 14 25Section 14. 619.04 (5m) (b) of the statutes is amended to read:
SB238,6,5
1619.04 (5m) (b) The rule shall provide that the automatic increase does not
2apply if the board determines that the performance of the patients injured patients
3and families
compensation fund peer review council in making recommendations
4under s. 655.275 (5) (a) adequately addresses the consideration set forth in sub. (5)
5(b).
SB238, s. 15 6Section 15. 619.04 (9) of the statutes is amended to read:
SB238,6,117 619.04 (9) Neither the state nor the board of governors shall be liable for any
8obligation of the plan or of the patients injured patients and families compensation
9fund under s. 655.27. The board of governors and members of any committee or
10subcommittee thereof shall be immune from civil liability for acts or omissions while
11performing their duties under this section and s. 655.27.
SB238, s. 16 12Section 16. Chapter 655 (title) of the statutes is amended to read:
SB238,6,1313 CHAPTER 655
SB238,6,1614 HEALTH CARE LIABILITY AND
15 PATIENTS
injured patients
16 and families
COMPENSATION
SB238, s. 17 17Section 17. 655.001 (7) of the statutes is amended to read:
SB238,6,1918 655.001 (7) "Fund" means the patients injured patients and families
19compensation fund under s. 655.27.
SB238, s. 18 20Section 18. Subchapter IV (title) of chapter 655 [precedes 655.27] of the
21statutes is amended to read:
SB238,6,2222 CHAPTER 655
SB238,6,2323 SUBCHAPTER IV
SB238,6,25 24PATIENTS Injured patients and
25 families
COMPENSATION FUND
SB238, s. 19
1Section 19. 655.27 (title) of the statutes is amended to read:
SB238,7,3 2655.27 (title) Patients Injured patients and families compensation
3fund.
SB238, s. 20 4Section 20. 655.27 (1) of the statutes is amended to read:
SB238,7,175 655.27 (1) Fund. There is created a patients an injured patients and families
6compensation fund for the purpose of paying that portion of a medical malpractice
7claim which is in excess of the limits expressed in s. 655.23 (4) or the maximum
8liability limit for which the health care provider is insured, whichever limit is
9greater, paying future medical expense payments under s. 655.015, and paying
10claims under sub. (1m). The fund shall provide occurrence coverage for claims
11against health care providers that have complied with this chapter, and against
12employees of those health care providers, and for reasonable and necessary expenses
13incurred in payment of claims and fund administrative expenses. The coverage
14provided by the fund shall begin July 1, 1975. The fund shall not be liable for
15damages for injury or death caused by an intentional crime, as defined under s.
16939.12, committed by a health care provider or an employee of a health care provider,
17whether or not the criminal conduct is the basis for a medical malpractice claim.
SB238, s. 21 18Section 21. 655.27 (3) (a) 2m. of the statutes is amended to read:
SB238,8,219 655.27 (3) (a) 2m. The loss and expense experience of the individual health care
20provider which resulted in the payment of money, from the fund or other sources, for
21damages arising out of the rendering of medical care by the health care provider or
22an employee of the health care provider, except that an adjustment to a health care
23provider's fees may not be made under this subdivision prior to the receipt of the
24recommendation of the patients injured patients and families compensation fund
25peer review council under s. 655.275 (5) (a) and the expiration of the time period

1provided, under s. 655.275 (7), for the health care provider to comment or prior to the
2expiration of the time period under s. 655.275 (5) (a).
SB238, s. 22 3Section 22. 655.27 (3) (am) of the statutes is amended to read:
SB238,8,134 655.27 (3) (am) Assessments for peer review council. The fund, a mandatory
5health care liability risk-sharing plan established under s. 619.04 , and a private
6health care liability insurer shall be assessed, as appropriate, fees sufficient to cover
7the costs of the patients injured patients and families compensation fund peer review
8council, including costs of administration, for reviewing claims paid by the fund,
9plan, and insurer, respectively, under s. 655.275 (5). The fees shall be set by the
10commissioner by rule, after approval by the board of governors, and shall be collected
11by the commissioner for deposit in the fund. The costs of the patients injured patients
12and families
compensation fund peer review council shall be funded from the
13appropriation under s. 20.145 (2) (um).
SB238, s. 23 14Section 23. 655.27 (3) (bg) 2. of the statutes is amended to read:
SB238,8,1915 655.27 (3) (bg) 2. The rule shall provide that the automatic increase does not
16apply if the board of governors determines that the performance of the patients
17injured patients and families compensation fund peer review council in making
18recommendations under s. 655.275 (5) (a) adequately addresses the consideration set
19forth in par. (a) 2m.
SB238, s. 24 20Section 24. 655.27 (6) of the statutes is repealed and recreated to read:
SB238,9,221 655.27 (6) Purpose and integrity of fund. The fund is established to curb the
22rising costs of health care by financing part of the liability incurred by health care
23providers as a result of medical malpractice claims and to ensure that proper claims
24are satisfied. Health care providers and claimants have contractual rights in all
25assets of the fund for those purposes. The fund, including any net worth of the fund,

1is held in trust exclusively for the benefit of health care providers and proper
2claimants and may not be spent for any other purpose of the state.
SB238, s. 25 3Section 25. 655.275 (title) of the statutes is amended to read:
SB238,9,5 4655.275 (title) Patients Injured patients and families compensation
5fund peer review council.
SB238, s. 26 6Section 26. 655.275 (1) of the statutes is amended to read:
SB238,9,87 655.275 (1) Definition. In this section, "council" means the patients injured
8patients and families
compensation fund peer review council.
SB238, s. 27 9Section 27. 893.55 (4) (b) of the statutes is amended to read:
SB238,9,1610 893.55 (4) (b) The total noneconomic damages recoverable for bodily injury or
11death, including any action or proceeding based on contribution or indemnification,
12may not exceed the limit under par. (d) for each occurrence on or after May 25, 1995,
13from all health care providers and all employees of health care providers acting
14within the scope of their employment and providing health care services who are
15found negligent and from the patients injured patients and families compensation
16fund.
SB238, s. 28 17Section 28. 893.82 (2) (d) 3. of the statutes is amended to read:
SB238,9,2218 893.82 (2) (d) 3. A member of the board of governors created under s. 619.04
19(3), a member of a committee or subcommittee of that board of governors, a member
20of the patients injured patients and families compensation fund peer review council
21created under s. 655.275 (2), and a person consulting with that council under s.
22655.275 (5) (b).
SB238, s. 29 23Section 29. 895.46 (4) of the statutes is amended to read:
SB238,9,2524 895.46 (4) The protection afforded by this section applies to members of the
25board of governors created under s. 619.04 (3), members of a committee or

1subcommittee of that board of governors, members of the patients injured patients
2and families
compensation fund peer review council created under s. 655.275 (2), and
3persons consulting with that council under s. 655.275 (5) (b), with respect to
4judgments, attorney fees, and costs awarded before, on, or after April 25, 1990.
SB238, s. 30 5Section 30. 895.70 (5) of the statutes is amended to read:
SB238,10,116 895.70 (5) Silence agreements. Any provision in a contract or agreement
7relating to the settlement of any claim by a patient against a therapist that limits
8or eliminates the right of the patient to disclose sexual contact by the therapist to a
9subsequent therapist, the department of regulation and licensing, the department
10of health and family services, the patients injured patients and families
11compensation fund peer review council, or a district attorney is void.
SB238,10,1212 (End)
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