AB844,48,7 7(1) Adopt policies for the administration of this chapter.
AB844,48,10 8(2) Contract with the plan administrator under s. 149.16, 2003 stats., in the
9manner required under 2005 Wisconsin Act .... (this act), section 162 (1) (b) until the
10end of the contract term.
AB844,48,12 11(3) Establish the authority's annual budget and monitor the fiscal
12management of the authority.
AB844,48,14 13(4) Beginning on July 1, 2006, do, or contract with another person to do, all of
14the following:
AB844,48,1615 (a) Perform all eligibility and administrative claims payment functions
16relating to the plan.
AB844,48,1917 (b) Establish a premium billing procedure for collection of premiums from
18insured persons. Billings shall be made on a periodic basis as determined by the
19authority.
AB844,48,2120 (c) Perform all necessary functions to assure timely payment of benefits to
21covered persons under the plan, including:
AB844,48,2422 1. Making available information relating to the proper manner of submitting
23a claim for benefits under the plan and distributing forms upon which submissions
24shall be made.
AB844,48,2525 2. Evaluating the eligibility of each claim for payment under the plan.
AB844,49,2
13. Notifying each claimant within 30 days after receiving a properly completed
2and executed proof of loss whether the claim is accepted, rejected, or compromised.
AB844,49,4 3(5) Seek to qualify or maintain the plan as a state pharmacy assistance
4program, as defined in 42 CFR 423.464.
AB844,49,6 5(6) Annually submit a report to the legislature under s. 13.172 (2) and to the
6governor on the operation of the plan.
AB844,49,10 7149.45 Powers of authority. (1) Except as restricted under sub. (2), the
8authority shall have all the powers necessary or convenient to carry out the purposes
9and provisions of this chapter. In addition to all other powers granted by this chapter,
10the authority may:
AB844,49,1211 (a) Adopt bylaws and policies and procedures for the regulation of its affairs
12and the conduct of its business.
AB844,49,1413 (b) Have a seal and alter the seal at pleasure; have perpetual existence; and
14maintain an office.
AB844,49,1515 (c) Hire employees, define their duties, and fix their rate of compensation.
AB844,49,1616 (d) Incur debt, except as restricted under sub. (2).
AB844,49,1817 (e) Contract for any professional services required for the authority, subject to
18ss. 149.43 (2) and 149.47.
AB844,49,2219 (f) Appoint any technical or professional advisory committee that the authority
20finds necessary to assist the authority in exercising its duties and powers. The
21authority shall define the duties of the committee, and provide reimbursement for
22the expenses of the committee.
AB844,49,2323 (g) Execute contracts and other instruments.
AB844,49,2524 (h) Accept gifts, grants, loans, or other contributions from private or public
25sources.
AB844,50,1
1(i) Procure liability insurance.
AB844,50,2 2(2) The authority may not issue bonds.
AB844,50,7 3149.47 Contracting for professional services. (1) Whenever contracting
4for professional services, the authority shall solicit competitive sealed bids or
5competitive sealed proposals, whichever is appropriate. Each request for
6competitive sealed proposals shall state the relative importance of price and other
7evaluation factors.
AB844,50,15 8(2) (a) When the estimated cost exceeds $25,000, the authority may invite
9competitive sealed bids or proposals by publishing a class 2 notice under ch. 985 or
10by posting notice on the Internet at a site determined or approved by the authority.
11The notice shall describe the contractual services to be purchased, the intent to make
12the procurement by solicitation of bids or proposals, any requirement for surety, and
13the date the bids or proposals will be opened, which shall be at least 7 days after the
14date of the last insertion of the notice or at least 7 days after the date of posting on
15the Internet.
AB844,50,1816 (b) When the estimated cost is $25,000 or less, the authority may award the
17contract in accordance with simplified procedures established by the authority for
18such transactions.
AB844,50,2219 (c) For purposes of clarification, the authority may discuss the requirements
20of the proposed contract with any person who submits a bid or proposal and shall
21permit any offerer to revise his or her bid or proposal to ensure its responsiveness to
22those requirements.
AB844,51,5 23(3) (a) The authority shall determine which bids or proposals are reasonably
24likely to be awarded the contract and shall provide each offerer of such a bid or
25proposal a fair and equal opportunity to discuss the bid or proposal. The authority

1may negotiate with each offerer in order to obtain terms that are advantageous to
2the authority. Prior to the award of the contract, any offerer may revise his or her
3bid or proposal. The authority shall keep a written record of all meetings,
4conferences, oral presentations, discussions, negotiations, and evaluations of bids or
5proposals under this section.
AB844,51,86 (b) In opening, discussing, and negotiating bids or proposals, the authority may
7not disclose any information that would reveal the terms of a competing bid or
8proposal.
AB844,51,14 9(4) (a) After receiving each offerer's best and final offer, the authority shall
10determine which proposal is most advantageous and shall award the contract to the
11person who offered it. The authority's determination shall be based only on price and
12the other evaluation factors specified in the request for bids or proposals. The
13authority shall state in writing the reason for the award and shall place the
14statement in the contract file.
AB844,51,1615 (b) Following the award of the contract, the authority shall prepare a register
16of all bids or proposals.
AB844,52,2 17149.50 Political activities. (1) No employee of the authority may directly
18or indirectly solicit or receive subscriptions or contributions for any partisan political
19party or any political purpose while engaged in his or her official duties as an
20employee. No employee of the authority may engage in any form of political activity
21calculated to favor or improve the chances of any political party or any person seeking
22or attempting to hold partisan political office while engaged in his or her official
23duties as an employee or engage in any political activity while not engaged in his or
24her official duties as an employee to such an extent that the person's efficiency during

1working hours will be impaired or that he or she will be tardy or absent from work.
2Any violation of this section is adequate grounds for dismissal.
AB844,52,6 3(2) If an employee of the authority declares an intention to run for partisan
4political office, the employee shall be placed on a leave of absence for the duration
5of the election campaign and if elected shall no longer be employed by the authority
6on assuming the duties and responsibilities of such office.
AB844,52,8 7(3) An employee of the authority may be granted, by the executive director, a
8leave of absence to participate in partisan political campaigning.
AB844,52,11 9(4) Persons on leave of absence under sub. (2) or (3) shall not be subject to the
10restrictions of sub. (1), except as they apply to the solicitation of assistance,
11subscription, or support from any other employee in the authority.
AB844,52,15 12149.53 Liability limited. (1) Neither the state nor any political subdivision
13of the state nor any officer, employee, or agent of the state or a political subdivision
14who is acting within the scope of employment or agency is liable for any debt,
15obligation, act, or omission of the authority.
AB844,52,17 16(2) All of the expenses incurred by the authority in exercising its duties and
17powers under this chapter shall be payable only from funds of the authority.
AB844, s. 148 18Section 148. 149.40 of the statutes, as created by 2005 Wisconsin Act .... (this
19act), is repealed.
AB844, s. 149 20Section 149. Subchapter IV of chapter 149 [precedes 149.60] of the statutes
21is created to read:
AB844,52,2222 Chapter 149
AB844,52,2323 Subchapter IV
AB844,52,2424 Health Care Tax Credit Program
AB844,53,2
1149.60 Definition. In this subchapter, "eligible individual" has the meaning
2given in 26 USC 35 (c).
AB844,53,8 3149.65 Program requirements. (1) Subject to sub. (2), the authority shall
4design and administer a program of health care coverage, called the Health Care Tax
5Credit Program, under which a covered eligible individual may receive an income tax
6credit under 26 USC 35 for a portion of premiums paid for the coverage. The Health
7Care Tax Credit Program shall be designed to satisfy the requirements of qualified
8health insurance under 26 USC 35 (e) (1) (E), (2), and (3).
AB844,53,11 9(2) Subsection (1) applies only as long as federal law provides for income tax
10credits for premiums paid for coverage that satisfies the requirements specified in
11sub. (1).
AB844,53,13 12149.70 Eligibility. An individual shall be eligible for coverage under the
13Health Care Tax Credit Program if the individual is any of the following:
AB844,53,14 14(1) An eligible individual for whom all of the following apply:
AB844,53,1615 (a) The aggregate of the individual's periods of creditable coverage, determined
16in the manner provided by rule under s. 149.115, is 3 months or more.
AB844,53,1717 (b) The individual does not have other health care coverage.
AB844,53,1818 (c) The individual is not confined in a prison, jail, or house of correction.
AB844,53,21 19(2) An individual who is a qualifying family member, as defined in 26 USC 35
20(d), of an eligible individual described in sub. (1) and who does not have other health
21care coverage.
AB844, s. 150 22Section 150. 230.03 (3) of the statutes is amended to read:
AB844,54,623 230.03 (3) "Agency" means any board, commission, committee, council, or
24department in state government or a unit thereof created by the constitution or
25statutes if such board, commission, committee, council, department, unit, or the

1head thereof, is authorized to appoint subordinate staff by the constitution or
2statute, except a legislative or judicial board, commission, committee, council,
3department, or unit thereof or an authority created under chs. subch. III of ch. 149
4or under ch.
231, 232, 233, 234, 235, or 237. "Agency" does not mean any local unit
5of government or body within one or more local units of government that is created
6by law or by action of one or more local units of government.
AB844, s. 151 7Section 151. 230.80 (4) of the statutes is amended to read:
AB844,54,158 230.80 (4) "Governmental unit" means any association, authority, board,
9commission, department, independent agency, institution, office, society , or other
10body in state government created or authorized to be created by the constitution or
11any law, including the legislature, the office of the governor, and the courts, but
12excluding the Health Insurance Risk-Sharing Plan Authority
. "Governmental unit"
13does not mean any political subdivision of the state or body within one or more
14political subdivisions which that is created by law or by action of one or more political
15subdivisions.
AB844, s. 152 16Section 152. 601.41 (1) of the statutes is amended to read:
AB844,54,2017 601.41 (1) Duties. The commissioner shall administer and enforce chs. 600 to
18655 and ss. 59.52 (11) (c), 66.0137 (4) and (4m), 100.203, 120.13 (2) (b) to (g), and
19149.13, and 149.144 and shall act as promptly as possible under the circumstances
20on all matters placed before the commissioner.
AB844, s. 153 21Section 153. 601.415 (12) of the statutes is amended to read:
AB844,54,2522 601.415 (12) Health insurance risk-sharing plan Insurance Risk-Sharing
23Plan
. The commissioner shall perform the duties specified to be performed by the
24commissioner in ss. s. 149.13 and 149.144. The commissioner, or his or her designee,
25shall serve as a member of the board under s. 149.15
.
AB844, s. 154
1Section 154. 601.64 (1) of the statutes is amended to read:
AB844,55,72 601.64 (1) Injunctions and restraining orders. The commissioner may
3commence an action in circuit court in the name of the state to restrain by temporary
4or permanent injunction or by temporary restraining order any violation of chs. 600
5to 655, or s. 149.13 or 149.144, any rule promulgated under chs. 600 to 655, or any
6order issued under s. 601.41 (4). The commissioner need not show irreparable harm
7or lack of an adequate remedy at law in an action commenced under this subsection.
AB844, s. 155 8Section 155. 601.64 (3) (a) of the statutes is amended to read:
AB844,55,129 601.64 (3) (a) Restitutionary forfeiture. Whoever violates an effective order
10issued under s. 601.41 (4), any insurance statute or rule, or s. 149.13 or 149.144 shall
11forfeit to the state twice the amount of any profit gained from the violation, in
12addition to any other forfeiture or penalty imposed.
AB844, s. 156 13Section 156. 601.64 (3) (c) of the statutes is amended to read:
AB844,55,2014 601.64 (3) (c) Forfeiture for violation of statute or rule. Whoever violates an
15insurance statute or rule or s. 149.13 or 149.144, intentionally aids a person in
16violating an insurance statute or rule or s. 149.13 or 149.144, or knowingly permits
17a person over whom he or she has authority to violate an insurance statute or rule
18or s. 149.13 or 149.144 shall forfeit to the state not more than $1,000 for each
19violation. If the statute or rule imposes a duty to make a report to the commissioner,
20each week of delay in complying with the duty is a new violation.
AB844, s. 157 21Section 157. 601.64 (4) of the statutes is amended to read:
AB844,56,222 601.64 (4) Criminal penalty. Whoever intentionally violates or intentionally
23permits any person over whom he or she has authority to violate or intentionally aids
24any person in violating any insurance statute or rule of this state, s. 149.13 or
25149.144
, or any effective order issued under s. 601.41 (4) is guilty of a Class I felony,

1unless a specific penalty is provided elsewhere in the statutes. Intent has the
2meaning expressed under s. 939.23.
AB844, s. 158 3Section 158. 613.03 (4) of the statutes is amended to read:
AB844,56,74 613.03 (4) Mandatory health insurance risk-sharing plan Health Insurance
5Risk-Sharing Plan
. Service insurance corporations organized or operating under
6this chapter are subject to the requirements that apply to insurers and insurance
7under
ch. 149.
AB844, s. 159 8Section 159. 631.20 (2) (f) of the statutes is created to read:
AB844,56,109 631.20 (2) (f) In the case of a policy form under ch. 149, that any of the following
10applies:
AB844,56,1211 1. The benefit design is not comparable to a typical comprehensive individual
12health insurance policy offered in the private sector market in this state.
AB844,56,1513 2. The benefit levels are not generally reflective of and commensurate with
14comprehensive health insurance coverage offered in the private individual market
15in the state.
AB844,56,1716 3. The copayments, deductibles, and coinsurance are not actuarially equivalent
17to comprehensive individual plans and would create undue financial hardship.
AB844,56,1918 4. It is inconsistent with the purpose of providing health care coverage to those
19unable to obtain coverage in the private market.
AB844, s. 160 20Section 160. 632.785 (title) of the statutes is amended to read:
AB844,56,22 21632.785 (title) Notice of mandatory risk-sharing plan Health Insurance
22Risk-Sharing Plan
.
AB844, s. 161 23Section 161. 895.65 (1) (c) of the statutes is amended to read:
AB844,57,624 895.65 (1) (c) "Governmental unit" means any association, authority, board,
25commission, department, independent agency, institution, office, society or other

1body in state government created or authorized to be created by the constitution or
2any law, including the legislature, the office of the governor and the courts.
3"Governmental unit" does not mean the University of Wisconsin Hospitals and
4Clinics Authority, the Health Insurance Risk-Sharing Plan Authority, or any
5political subdivision of the state or body within one or more political subdivisions
6which is created by law or by action of one or more political subdivisions.
AB844, s. 162 7Section 162 . Nonstatutory provisions.
AB844,57,88 (1) Administrator contract.
AB844,57,159 (a) Because the legislature has determined that it is in the best interest of the
10Health Insurance Risk-Sharing Plan to have the Health Insurance Risk-Sharing
11Plan Authority administer the Health Insurance Risk-Sharing Plan beginning on
12July 1, 2006, the department of health and family services shall, no later than
13January 1, 2006, give written notice to the plan administrator under section 149.16,
142003 stats., terminating the contract between the department of health and family
15services and the plan administrator effective July 1, 2006.
AB844,58,616 (b) Notwithstanding the treatment of sections 149.11 (1), 149.12 (1) (intro.) and
17(1m), and 149.16 of the statutes, as affected by this act, the Health Insurance
18Risk-Sharing Plan Authority shall enter into a contract with the plan administrator
19under section 149.16, 2003 stats., that has the same terms and conditions as the
20contract under paragraph (a) and under which the plan administrator has the same
21rights, duties, and obligations as it had under the contract under paragraph (a) and
22the Health Insurance Risk-Sharing Plan Authority has the same rights, duties, and
23obligations as the department of health and family services had under the contract
24under paragraph (a). The contract under this paragraph shall have a term beginning
25on July 1, 2006, and ending on the same date as the contract under paragraph (a)

1would have ended had the contract not been terminated under paragraph (a). The
2department of health and family services, the plan administrator, and the Health
3Insurance Risk-Sharing Plan Authority shall cooperate with one another to ensure
4that the administration of the Health Insurance Risk-Sharing Plan continues
5without interruption after the termination of the contract under paragraph (a) and
6the commencement of the contract under this paragraph.
AB844,58,117 (2) Terms of initial members of board. Notwithstanding the length of terms
8specified for the members of the board of directors of the Health Insurance
9Risk-Sharing Plan Authority under section 149.41 (1) of the statutes, as created by
10this act, the initial members of the board of directors shall be appointed for the
11following terms:
AB844,58,1512 (a) At the governor's discretion, one member appointed under section 149.41
13(1) (a) of the statutes, one member appointed under section 149.41 (1) (b) of the
14statutes, and one member appointed under section 149.41 (1) (c) of the statutes for
15one-year terms.
AB844,58,1916 (b) At the governor's discretion, 2 members appointed under section 149.41 (1)
17(a) of the statutes, 2 members appointed under section 149.41 (1) (b) of the statutes,
18and 2 members appointed under section 149.41 (1) (c) of the statutes, for 2-year
19terms.
AB844,58,2320 (c) At the governor's discretion, one member appointed under section 149.41
21(1) (a) of the statutes, one member appointed under section 149.41 (1) (b) of the
22statutes, and 2 members appointed under section 149.41 (1) (c) of the statutes, for
233-year terms.
AB844, s. 163 24Section 163 . Appropriation changes.
AB844,59,8
1(1) Transfers for funding Health Insurance Risk-Sharing Plan. The
2unencumbered balance in the Health Insurance Risk-Sharing Plan fund under
3section 25.55, 2003 stats., immediately before the effective date of this subsection,
4and the unencumbered balances in the appropriation accounts under section 20.435
5(4) (u), 2003 stats., and section 20.435 (4) (v), 2003 stats., immediately before the
6effective date of this subsection, are transferred to the Health Insurance
7Risk-Sharing Plan fund under section 149.11 (2) of the statutes, as affected by this
8act.
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