AB1171: Bill Text

LRB-4520/1

PJK:lmk:pg

2005 - 2006 LEGISLATURE

2005 Assembly BILL 1171

April 5, 2006 - Introduced by Representatives Gielow, Albers, Benedict, Gronemus, Hebl, Hubler, Lehman, Nelson, Seidel and Zepnick, cosponsored by Senators Robson, Erpenbach and Hansen. Referred to Committee on Insurance.

AB1171,1,8 An Act to amend 13.172 (1), 13.48 (13) (a), 13.62 (2), 13.95 (intro.), 16.002 (2), 16.004 (4), 16.004 (5), 16.045 (1) (a), 16.41 (4), 16.417 (1) (a), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a) 1., 16.70 (2), 16.765 (1), 16.765 (2), 16.765 (4), 16.765 (5), 16.765 (6), 16.765 (7) (intro.), 16.765 (7) (d), 16.765 (8), 16.85 (2), 16.865 (8), 71.26 (1) (be), 77.54 (9a) (a), 100.45 (1) (dm), 101.177 (1) (d), 230.03 (3) and 285.59 (1) (b); and to create 70.11 (41p) and chapter 238 of the statutes; relating to: creating a Healthy Wisconsin Authority and requiring a study on a catastrophic reinsurance program for health care costs.

Analysis by the Legislative Reference Bureau

This bill creates the Healthy Wisconsin Authority (HWA). An authority is a public body corporate and politic with a board of directors that is created by state law but that is not a state agency. The board of directors of HWA consists of the commissioner of insurance, or the commissioner's designee, as a nonvoting member and 13 other members who will serve four-year terms, including a majority party senator and a majority party representative to the assembly, appointed by the senate majority leader and the speaker of the assembly, respectively, and a minority party senator and a minority party representative to the assembly, appointed by the senate minority leader and the assembly minority leader, respectively. Nine other members are nominated by the governor and appointed with the advice and consent of the senate and consist of a health care provider and representatives of a health insurance company, an employer, Wisconsin labor unions, and the public interest. The board must appoint an executive director, who may not be a member of the board.

Because HWA is not a state agency, numerous laws that apply to state agencies do not apply to HWA. However, HWA is treated like a state agency in the following respects, among others: 1) it is generally subject to the open records and open meetings laws; 2) it is treated like a state agency for purposes of the law regulating lobbying; 3) it is subject to state purchasing requirements and must use a competitive bid or proposal process whenever contracting for services; 4) it is exempt from income tax, sales and use tax, and property taxes; 5) the Code of Ethics for Public Officials and Employees covers HWA; and 6) it is subject to auditing by the Legislative Audit Bureau.

HWA is unlike a state agency in many other ways, including: 1) it may approve its own budget without going through the state budgetary process; 2) its employees are not state employees, are not included in the state system of personnel management, may not participate in the system for state retirement benefits or health insurance coverage, and are hired outside the state hiring system; and 3) it is not subject to statutory rule-making procedures, including requirements for legislative review of proposed rules. Unlike most authorities under current law, HWA may not issue bonds.

HWA must study options for implementing a program for providing reinsurance to groups and individuals in the state for catastrophic claims under group and individual health insurance policies. By November 15, 2006, HWA must submit a report to the secretary of administration with its recommendations for implementing the reinsurance program. HWA must develop and administer the reinsurance program after legislation is enacted that authorizes or requires HWA to do so.

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:

AB1171, s. 1 Section 1. 13.172 (1) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,3,2 13.172 (1) In this section, "agency" means an office, department, agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, and any authority created in subch. III of ch. 149 or in ch. 231, 233, or 234, or 238.

AB1171, s. 2 Section 2. 13.48 (13) (a) of the statutes is amended to read:

AB1171,3,15 13.48 (13) (a) Except as provided in par. (b) or (c), every building, structure or facility that is constructed for the benefit of or use of the state, any state agency, board, commission or department, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Healthy Wisconsin Authority, or any local professional baseball park district created under subch. III of ch. 229 if the construction is undertaken by the department of administration on behalf of the district, shall be in compliance with all applicable state laws, rules, codes and regulations but the construction is not subject to the ordinances or regulations of the municipality in which the construction takes place except zoning, including without limitation because of enumeration ordinances or regulations relating to materials used, permits, supervision of construction or installation, payment of permit fees, or other restrictions.

AB1171, s. 3 Section 3. 13.62 (2) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,3,21 13.62 (2) "Agency" means any board, commission, department, office, society, institution of higher education, council, or committee in the state government, or any authority created in subch. III of ch. 149 or in ch. 231, 232, 233, 234, or 237, or 238, except that the term does not include a council or committee of the legislature.

AB1171, s. 4 Section 4. 13.95 (intro.) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,4,10 13.95 Legislative fiscal bureau. (intro.) There is created a bureau to be known as the "Legislative Fiscal Bureau" headed by a director. The fiscal bureau shall be strictly nonpartisan and shall at all times observe the confidential nature of the research requests received by it; however, with the prior approval of the requester in each instance, the bureau may duplicate the results of its research for distribution. Subject to s. 230.35 (4) (a) and (f), the director or the director's designated employees shall at all times, with or without notice, have access to all state agencies, the University of Wisconsin Hospitals and Clinics Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, and the Fox River Navigational System Authority, and to any books, records, or other documents maintained by such agencies or authorities and relating to their expenditures, revenues, operations, and structure.

AB1171, s. 5 Section 5. 16.002 (2) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,4,17 16.002 (2) "Departments" means constitutional offices, departments, and independent agencies and includes all societies, associations, and other agencies of state government for which appropriations are made by law, but not including authorities created in subch. III of ch. 149 and in chs. 231, 232, 233, 234, 235, and 237, and 238.

AB1171, s. 6 Section 6. 16.004 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,4,25 16.004 (4) Freedom of access. The secretary and such employees of the department as the secretary designates may enter into the offices of state agencies and authorities created under subch. III of ch. 149 and under chs. 231, 233, 234, and 237, and 238, and may examine their books and accounts and any other matter that in the secretary's judgment should be examined and may interrogate the agency's employees publicly or privately relative thereto.

AB1171, s. 7 Section 7. 16.004 (5) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,5,6 16.004 (5) Agencies and employees to cooperate. All state agencies and authorities created under subch. III of ch. 149 and under chs. 231, 233, 234, and 237, and 238, and their officers and employees, shall cooperate with the secretary and shall comply with every request of the secretary relating to his or her functions.

AB1171, s. 8 Section 8. 16.045 (1) (a) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,5,14 16.045 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. III of ch. 149 or in ch. 231, 232, 233, 234, 235, or 237, or 238.

AB1171, s. 9 Section 9. 16.41 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,5,18 16.41 (4) In this section, "authority" means a body created under subch. III of ch. 149 or under ch. 231, 233, 234, or 237, or 238.

AB1171, s. 10 Section 10. 16.417 (1) (a) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,6,2 16.417 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority or the body created under subch. III of ch. 149 or under ch. 238.

AB1171, s. 11 Section 11. 16.52 (7) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,6,14 16.52 (7) Petty cash account. With the approval of the secretary, each agency that is authorized to maintain a contingent fund under s. 20.920 may establish a petty cash account from its contingent fund. The procedure for operation and maintenance of petty cash accounts and the character of expenditures therefrom shall be prescribed by the secretary. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 238.

AB1171, s. 12 Section 12. 16.528 (1) (a) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,6,22 16.528 (1) (a) "Agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 238.

AB1171, s. 13 Section 13. 16.53 (2) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,7,9 16.53 (2) Improper invoices. If an agency receives an improperly completed invoice, the agency shall notify the sender of the invoice within 10 working days after it receives the invoice of the reason it is improperly completed. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 238.

AB1171, s. 14 Section 14. 16.54 (9) (a) 1. of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,7,17 16.54 (9) (a) 1. "Agency" means an office, department, independent agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in subch. III of ch. 149 or in ch. 231, 233, 234, or 237, or 238.

AB1171, s. 15 Section 15. 16.70 (2) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,7,21 16.70 (2) "Authority" means a body created under subch. III of ch. 149 or under ch. 231, 232, 233, 234, 235, or 237, or 238.

AB1171, s. 16 Section 16. 16.765 (1) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,8,8 16.765 (1) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, and the Bradley Center Sports and Entertainment Corporation shall include in all contracts executed by them a provision obligating the contractor not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation as defined in s. 111.32 (13m), or national origin and, except with respect to sexual orientation, obligating the contractor to take affirmative action to ensure equal employment opportunities.

AB1171, s. 17 Section 17. 16.765 (2) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,9,2 16.765 (2) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, and the Bradley Center Sports and Entertainment Corporation shall include the following provision in every contract executed by them: "In connection with the performance of work under this contract, the contractor agrees not to discriminate against any employee or applicant for employment because of age, race, religion, color, handicap, sex, physical condition, developmental disability as defined in s. 51.01 (5), sexual orientation or national origin. This provision shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Except with respect to sexual orientation, the contractor further agrees to take affirmative action to ensure equal employment opportunities. The contractor agrees to post in conspicuous places, available for employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the nondiscrimination clause".

AB1171, s. 18 Section 18. 16.765 (4) of the statutes, as affected by 2005 Wisconsin Act 74, is amended to read:

AB1171,9,9 16.765 (4) Contracting agencies, the University of Wisconsin Hospitals and Clinics Authority, the Fox River Navigational System Authority, the Health Insurance Risk-Sharing Plan Authority, the Healthy Wisconsin Authority, and the Bradley Center Sports and Entertainment Corporation shall take appropriate action to revise the standard government contract forms under this section.