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.
AB844,59,99 (2) Health Insurance Risk-Sharing Plan.
AB844,59,1710 (a) Administration. In the schedule under section 20.005 (3) of the statutes for
11the appropriation to the department of health and family services under section
1220.435 (4) (u) of the statutes, as affected by the acts of 2005, the dollar amount is
13increased by $3,535,500 for fiscal year 2005-06 to fund the costs of the department
14for administering the Health Insurance Risk-Sharing Plan until July 1, 2006, and
15to increase the authorized FTE positions for the department by 4.83 SEG positions
16for the period ending on July 1, 2006, for administration of the Health Insurance
17Risk-Sharing Plan.
AB844,59,2218 (b) Program benefits. In the schedule under section 20.005 (3) of the statutes
19for the appropriation to the department of health and family services under section
2020.435 (4) (v) of the statutes, as affected by the acts of 2005, the dollar amount is
21increased by $78,643,800 for fiscal year 2005-06 to increase funding for the purposes
22for which the appropriation is made.
AB844, s. 164 23Section 164 . Initial applicability.
AB844,60,224 (1) Residency for the Health Insurance Risk-Sharing Plan. The treatment
25of section 149.10 (9) of the statutes first applies to persons who submit applications

1for coverage under the Health Insurance Risk-Sharing Plan on the effective date of
2this subsection.
AB844,60,63 (2) Plan design. The treatment of section 149.14 (3) (b), (c) 1., 2., and 3. (by
4Section
97), (e), (f), (m), (o), and (p), and (6) (a) and (b) of the statutes and the repeal
5and recreation of section 149.14 (4) and (5) of the statutes first apply to the plan year
6beginning on January 1, 2007.
AB844,60,107 (3) Income tax exemptions. The treatment of sections 71.07 (5g), 71.10 (4) (cp),
871.21 (4), 71.26 (2) (a), 71.28 (5g), 71.30 (3) (dm), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47
9(5g), 71.49 (1) (dm), 76.655, 76.67 (2), and 77.92 (4) of the statutes first applies to
10taxable years beginning on January 1, 2006.
AB844,60,1511 (4) Preexisting condition exclusion. The treatment of section 149.14 (6) (a)
12and (b) of the statutes and the repeal and recreation of section 149.14 (4) (with
13respect to establishing preexisting condition exclusions) of the statutes first apply
14to persons who submit applications for coverage under the Health Insurance
15Risk-Sharing Plan on the effective date of this subsection.
AB844, s. 165 16Section 165. Effective dates. This act takes effect as follows:
AB844,60,1817 (1) Administrator contract. Sections 162 (1) (a ) and 163 (2) of this act take
18effect on the day after publication.
AB844,61,619 (2) Creation of authority; insurer assessment tax credit; miscellaneous. The
20treatment of sections 1.12 (1) (b), 13.172 (1), 13.62 (2), 13.94 (1) (b), (dh), and (g),
2113.95 (intro.), 16.002 (2), 16.004 (4), (5), and (12) (a), 16.045 (1) (a), 16.15 (1) (ab),
2216.41 (4), 16.417 (1) (a), 16.52 (7), 16.528 (1) (a), 16.53 (2), 16.54 (9) (a) 1., 16.70 (2),
2316.72 (2) (e) (intro.) and (f), 16.75 (1m), (8) (a) 1. and 2., and (9), 16.765 (1), (2), (4),
24(5), (6), (7) (intro.) and (d), and (8), 16.85 (2), 16.865 (8), 71.07 (5g), 71.10 (4) (cp), 71.21
25(4), 71.26 (2) (a), 71.28 (5g), 71.30 (3) (dm), 71.34 (1) (g), 71.45 (2) (a) 10., 71.47 (5g),

171.49 (1) (dm), 76.655, 76.67 (2), 77.92 (4), 101.055 (2) (a), 101.177 (1) (d), 149.10 (2j)
2(a) 3., (2t) (c), (3), (7), and (8), 149.12 (2) (g), 149.18, 149.25, 230.03 (3), 230.80 (4), and
3895.65 (1) (c), subchapter I (title) of chapter 149, and subchapter II (title) of chapter
4149 of the statutes, the creation of subchapter III of chapter 149 of the statutes, and
5Section 162 (1) (b ) and (2) of this act take effect on January 1, 2006, or on the day
6after publication, whichever is later.
AB844,61,207 (3) Transfer of administration. The treatment of sections 20.145 (5), 20.435
8(4) (u) and (v), 25.17 (1) (gf), 25.55 (intro.), (3), and (4), 149.10 (intro.), (1), (2), (2m),
9(3e), (9), and (10), 149.105, 149.11, 149.115, 149.12 (1) (intro.) and (a), (1m), (3) (a)
10and (c), (4), and (5), 149.13 (1), (3) (a) and (b), and (4), 149.14 (1) (a), (2) (a), (3) (intro.),
11(c) 3. (by Section 96 ), and (d), (4c), (4m), (5m), (7) (b) and (c), and (8), 149.141, 149.142
12(1) (a) and (b) and (2), 149.143, 149.144, 149.145, 149.146 (1) (a) and (b) and (2) (a),
13(am), and (b), 149.15, 149.16, 149.165 (1), (2) (a) (intro.) and (bc), (3) (a) and (b)
14(intro.), (3m), and (4), 149.17 (1), (2), and (4), 149.175, 149.20, 601.41 (1), 601.415
15(12), 601.64 (1), (3) (a) and (c), and (4), 613.03 (4), 631.20 (2) (f), 632.785 (title), and
16subchapter IV of chapter 149 of the statutes, the repeal of sections 149.14 (5) (d) and
17(e) and 149.40 of the statutes, the renumbering and amendment of section 149.12 (2)
18(f) of the statutes, the amendment of section 149.14 (4) (d) and (m) and (5) (b) and (c)
19of the statutes, the creation of section 149.12 (2) (f) 2. of the statutes, and Sections
20163 (1) and 164 (1) of the statutes take effect on July 1, 2006.
AB844,61,2421 (4) Plan design. The treatment of section 149.14 (3) (b), (c) 1., 2., and 3. (by
22Section 97), (e), (f), (m), (o), and (p), and (6) (a) and (b) of the statutes, the repeal and
23recreation of section 149.14 (4) and (5) of the statutes, and Section 164 (2) and (4)
24of this act take effect on January 1, 2007.
AB844,61,2525 (End)
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