SB451: Bill Text

SB451,20,19 149.11 (2) (a) 2. Premiums paid by eligible persons under ch. 149.

SB451, s. 44 Section 44. 71.07 (5g) of the statutes is created to read:

SB451,20,25 71.07 (5g) Health Insurance Risk-Sharing Plan assessments credit. (a) Definitions. In this subsection, "claimant" means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in s. 149.10 (5).

SB451,21,5 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to a percentage of the amount of the assessment under s. 149.13 that the claimant paid in the calendar year in which the claimant's taxable year begins.

SB451,21,10 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the amount of the credit awarded to all claimants under this subsection and ss. 71.28 (5g), 71.47 (5g), and 76.655 is as close as practicable to $5,000,000 in each fiscal year.

SB451,21,18 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB451,21,23 3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

SB451,21,25 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB451, s. 45 Section 45. 71.10 (4) (cp) of the statutes is created to read:

SB451,22,3 71.10 (4) (cp) Health Insurance Risk-Sharing Plan assessments credit under s. 71.07 (5g).

SB451, s. 46 Section 46. 71.21 (4) of the statutes is amended to read:

SB451,22,7 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), and (5b), and (5g) and passed through to partners shall be added to the partnership's income.

SB451, s. 47 Section 47. 71.26 (2) (a) of the statutes is amended to read:

SB451,23,2 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3g), (3n), (3t), and (5b), (5g) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the Internal Revenue Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB451, s. 48 Section 48. 71.28 (5g) of the statutes is created to read:

SB451,23,6 71.28 (5g) Health Insurance Risk-Sharing Plan assessments credit. (a) Definitions. In this subsection, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this subsection.

SB451,23,11 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.23 an amount that is equal to a percentage of the amount of assessment under s. 149.13 that the claimant paid in the calendar year in which the claimant's taxable year begins.

SB451,23,16 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the amount of the credit awarded to all claimants under this subsection and ss. 71.07 (5g), 71.47 (5g), and 76.655 is as close as practicable to $5,000,000 in each fiscal year.

SB451,23,24 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB451,24,5 3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

SB451,24,7 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB451, s. 49 Section 49. 71.30 (3) (dm) of the statutes is created to read:

SB451,24,10 71.30 (3) (dm) Health Insurance Risk-Sharing Plan assessments credit under s. 71.28 (5g).

SB451, s. 50 Section 50. 71.34 (1) (g) of the statutes is amended to read:

SB451,24,14 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g), (3n), (3t), and (5b), and (5g) and passed through to shareholders.

SB451, s. 51 Section 51. 71.45 (2) (a) 10. of the statutes is amended to read:

SB451,24,21 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dx), (3n), and (5b), and (5g) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).

SB451, s. 52 Section 52. 71.47 (5g) of the statutes is created to read:

SB451,24,25 71.47 (5g) Health Insurance Risk-Sharing Plan assessments credit. (a) Definitions. In this subsection, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this subsection.

SB451,25,5 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to a percentage of the amount of assessment under s. 149.13 that the claimant paid in the calendar year in which the claimant's taxable year begins.

SB451,25,10 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the amount of the credit awarded to all claimants under this subsection and ss. 71.07 (5g), 71.28 (5g), and 76.655 is as close as practicable to $5,000,000 in each fiscal year.

SB451,25,18 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts described under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

SB451,25,23 3. The amount of any credits that a claimant is awarded under this subsection for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the tax imposed under this subchapter for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

SB451,25,25 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB451, s. 53 Section 53. 71.49 (1) (dm) of the statutes is created to read:

SB451,26,3 71.49 (1) (dm) Health Insurance Risk-Sharing Plan assessments credit under s. 71.47 (5g).

SB451, s. 54 Section 54. 76.655 of the statutes is created to read:

SB451,26,7 76.655 Health Insurance Risk-Sharing Plan assessments credit. (1) Definitions. In this section, "claimant" means an insurer, as defined in s. 149.10 (5), who files a claim under this section.

SB451,26,12 (2) Filing claims. Subject to the limitations provided under this section, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the fees imposed under ss. 76.60, 76.63, 76.65, 76.66 or 76.67 an amount that is equal to a percentage of the amount of assessment under s. 149.13 that the claimant paid in the calendar year in which the claimant's taxable year begins.

SB451,26,17 (3) Limitations. (a) The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under sub. (2) for each claimant for each taxable year so that the amount of the credit awarded to all claimants under this section and ss. 71.07 (5g), 71.28 (5g), and 71.47 (5g) is as close as practicable to $5,000,000 in each fiscal year.

SB451,26,22 (b) The amount of any credits that a claimant is awarded under this section for taxable years beginning after December 31, 2005, and before January 1, 2008, may first be claimed against the fees imposed under ss. 76.60, 76.63, 76.65, or 76.67 for taxable years beginning after December 31, 2007, and in the manner determined by the department of revenue.

SB451,27,3 (4) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 that are otherwise due, the unused balance may be carried forward and credited against those fees in the following 15 years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the assessment was paid and the year in which the carry-forward credit is claimed.

SB451, s. 55 Section 55. 76.67 (2) of the statutes is amended to read:

SB451,27,14 76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credit credits under s. ss. 76.635 and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under s. ss. 76.635 and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

SB451, s. 56 Section 56. 77.92 (4) of the statutes is amended to read:

SB451,28,5 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), and (5b), and (5g); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB451, s. 57 Section 57. 101.055 (2) (a) of the statutes is amended to read:

SB451,28,11 101.055 (2) (a) "Agency" means an office, department, independent agency, authority, institution, association, society, or other body in state government created or authorized to be created by the constitution or any law, and includes the legislature and the courts, but excludes the Health Insurance Risk-Sharing Plan Authority.

SB451, s. 58 Section 58. 101.177 (1) (d) of the statutes is amended to read:

SB451,28,21 101.177 (1) (d) "State agency" means any 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 which , that is entitled to expend moneys appropriated by law, including the legislature and the courts, the Wisconsin Housing and Economic Development Authority, the Bradley Center Sports and Entertainment Corporation, the University of Wisconsin Hospitals and Clinics Authority, and the Wisconsin Health and Educational Facilities Authority, but excluding the Health Insurance Risk-Sharing Plan Authority.

SB451, s. 59 Section 59. Chapter 149 (title) of the statutes is amended to read:

SB451,28,23 CHAPTER 149

SB451,28,25 Mandatory health insurance risk-sharing plan Plans

SB451, s. 60 Section 60. Subchapter I (title) of chapter 149 [precedes 149.10] of the statutes is created to read:

SB451,29,3 CHAPTER 149

SB451,29,5 subchapter I General provisions

SB451, s. 61 Section 61. 149.10 (intro.) of the statutes is amended to read:

SB451,29,8 149.10 Definitions. (intro.) In this chapter, unless the context requires otherwise:

SB451, s. 62 Section 62. 149.10 (1) of the statutes is created to read:

SB451,29,11 149.10 (1) "Authority" means the Health Insurance Risk-Sharing Plan Authority.

SB451, s. 63 Section 63. 149.10 (2) of the statutes is amended to read:

SB451,29,14 149.10 (2) "Board" means the board of governors established under s. 149.15 directors of the authority.

SB451, s. 64 Section 64. 149.10 (2j) (a) 3. of the statutes is amended to read:

SB451,29,17 149.10 (2j) (a) 3. Part A or, part B, or part D of title XVIII of the federal Social Security Act.

SB451, s. 65 Section 65. 149.10 (2m) of the statutes is repealed.

SB451, s. 66 Section 66. 149.10 (2t) (c) of the statutes is amended to read:

SB451,29,23 149.10 (2t) (c) The individual does not have creditable coverage and is not eligible for coverage under a group health plan, part A or , part B, or part D of title XVIII of the federal Social Security Act or a state plan under title XIX of the federal Social Security Act or any successor program.

SB451, s. 67 Section 67. 149.10 (3) of the statutes is amended to read:

SB451,30,3 149.10 (3) "Eligible person" means a resident of this state who qualifies under s. 149.12 whether or not the person is legally responsible for the payment of medical expenses incurred on the person's behalf.

SB451, s. 68 Section 68. 149.10 (3e) of the statutes is amended to read:

SB451,30,6 149.10 (3e) "Fund" means the health insurance risk-sharing plan Health Insurance Risk-Sharing Plan fund under s. 149.11 (2).

SB451, s. 69 Section 69. 149.10 (7) of the statutes is amended to read:

SB451,30,9 149.10 (7) "Medicare" means coverage under both part A and, part B, and part D of Title XVIII of the federal social security act, 42 USC 1395 et seq., as amended.

SB451, s. 70 Section 70. 149.10 (8) of the statutes is amended to read:

SB451,30,12 149.10 (8) "Plan" means the health care insurance plan established and administered under subchapter II of this chapter.

SB451, s. 71 Section 71. 149.10 (9) of the statutes is amended to read:

SB451,30,24 149.10 (9) "Resident" means a person who has been legally domiciled in this state for a period of at least 30 days 3 months or, with respect to an eligible individual, an individual who resides in this state. For purposes of this chapter, legal domicile is established by living in this state and obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin, or filing a Wisconsin income tax return. A child is legally domiciled in this state if the child lives in this state and if at least one of the child's parents or the child's guardian is legally domiciled in this state. A person with a developmental disability or another disability which that prevents the person from obtaining a Wisconsin motor vehicle operator's license, registering to vote in Wisconsin, or filing a Wisconsin income tax return, is legally domiciled in this state by living in this state.

SB451, s. 72 Section 72. 149.10 (10) of the statutes is repealed.

SB451, s. 73 Section 73. 149.105 of the statutes is created to read:

SB451,31,8 149.105 Immunity. No cause of action of any nature may arise against, and no liability may be imposed upon, the authority, plan, or board; or any agent, employee, or director of any of them; or participating insurers; or the commissioner; or any of the commissioner's agents, employees, or representatives, for any act or omission by any of them in the performance of their powers and duties under this chapter, unless the person asserting liability proves that the act or omission constitutes willful misconduct.

SB451, s. 74 Section 74. Subchapter II (title) of chapter 149 [precedes 149.11] of the statutes is created to read:

SB451,31,11 CHAPTER 149

SB451,31,14 subchapter II Health insurance risk-sharing plan provisions

SB451, s. 75 Section 75. 149.11 of the statutes is repealed and recreated to read:

SB451,31,18 149.11 Administration of plan. (1) Authority. The authority shall be responsible for the operation of the plan and, subject to ss. 149.143 (2) and 149.47, may enter into contracts for the plan's administration.

SB451,31,21 (2) Fund. (a) The authority shall pay the operating and administrative expenses of the plan from the fund, which shall be outside the state treasury and which shall consist of all of the following:

SB451,31,22 3. Federal moneys paid to the authority under s. 20.145 (5) (m).

SB451,31,24 4. The moneys transferred under 2005 Wisconsin Act .... (this act), section 163 (1).

SB451,31,25 5. The earnings resulting from investments under par. (b).