MR8 AB1: Bill Text

Currently, in any fiscal year, the secretary of administration may temporarily reallocate moneys to the general fund from other state funds in an amount not to exceed, at any one time, 5 percent of the total general purpose revenue appropriations for that fiscal year. This bill increases that amount to 10 percent during the 2007-09 fiscal biennium.

2007 Wisconsin Act 20 required the secretary of administration to lapse or transfer to the general fund from appropriations to almost all executive branch state agencies, other than sum sufficient appropriations and appropriations of federal revenues, an amount equal to $200,000,000 during the 2007-09 fiscal biennium and $200,000,000 during the 2009-11 fiscal biennium.

The bill requires the secretary of administration to make additional lapses or transfers to the general fund from appropriations to all executive branch state agencies, other than sum sufficient appropriations and appropriations of federal revenues, in an amount equal to $330,400,000 during the 2007-09 fiscal biennium and $330,400,000 during the 2009-11 fiscal biennium.

The bill, however, provides that not more than a total of $293,000,000 may be lapsed or transferred, under this act and 2007 Wisconsin Act 20, to the general fund from appropriations to the Department of Transportation (DOT) during the 2007-09 fiscal biennium.

Current statutes contain a rule of proceeding governing legislative action on certain bills. Generally, the rule provides that no bill may be adopted by the legislature if the bill would cause general purpose revenue expenditures in a fiscal year, less amounts transferred to the budget stabilization fund in that fiscal year, to exceed the sum of taxes and departmental revenues deposited in the general fund in that fiscal year. This bill includes the balance of the budget stabilization fund for the purpose of calculating the cap for general purpose revenue expenditures during each fiscal year of the 2007-09 fiscal biennium.

Under current law, certain excess general purpose revenues, net proceeds from the sale of state buildings, structures, or land, and net proceeds from the sale of state surplus property are deposited into the budget stabilization fund. This bill provides that, if the projected balance of the general fund on June 30, 2008, or June 30, 2009, is less than $65,000,000, the secretary of administration may transfer any amount of moneys from the budget stabilization fund to the general fund.

Taxation

This bill disallows certain deductions, for income and franchise tax purposes, for amounts paid to a real estate investment trust and for amounts paid to a regulated investment company.

transportation

This bill requires the secretary of administration to transfer $5,000,000 from the transportation fund to the general fund in fiscal year 2007-08.

This bill also prohibits JCF from supplementing any DOT appropriation in fiscal year 2007-08, for purposes relating to implementation of the federal REAL ID Act of 2005, unless after the supplement there remains unexpended in the JCF appropriation, for fiscal year 2007-08, at least $5,000,000 of the estimated expenditures in this appropriation relating to implementation of the federal REAL ID Act of 2005.

Current law authorizes the state to contract public debt (issue general obligation bonds) for purposes of funding major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects, subject to specified limitations. On some of this debt, principal and interest costs incurred in financing the debt (debt service) is paid from the general fund, and on some of this debt the debt service is paid from the transportation fund.

This bill authorizes the state to contract up to an additional $190,000,000 in public debt for purposes of funding major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects. Debt service on this additional debt is paid from the general fund.

This bill decreases DOT state funds appropriations for major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects. The bill also requires the secretary of administration and DOT to increase revenue estimates for certain other appropriations, and for available general obligation bond proceeds, for major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects. The appropriation decreases are not included in establishing DOT's appropriation base level for the respective appropriations when DOT submits its 2009-11 biennial budget request.

For further information see the state and local 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:

AB1, s. 1 Section 1. 13.101 (6) (a) of the statutes is amended to read:

AB1,6,17 13.101 (6) (a) As an emergency measure necessitated by decreased state revenues and to prevent the necessity for a state tax on general property, the committee may reduce any appropriation made to any board, commission, department, or the University of Wisconsin System, or to any other state agency or activity, by such amount as it deems feasible, not exceeding 25% of the appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (cg), and (cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax), and (6) (ac), (af), (aq), (ar), and (au), 20.435 (6) (a) and (7) (da), and 20.445 (3) (a) and (dz) or for forestry purposes under s. 20.370 (1), or any other moneys distributed to any county, city, village, town, or school district. Appropriations of receipts and of a sum sufficient shall for the purposes of this section be regarded as equivalent to the amounts expended under such appropriations in the prior fiscal year which ended June 30. All functions of said state agencies shall be continued in an efficient manner, but because of the uncertainties of the existing situation no public funds should be expended or obligations incurred unless there shall be adequate revenues to meet the expenditures therefor. For such reason the committee may make reductions of such appropriations as in its judgment will secure sound financial operations of the administration for said state agencies and at the same time interfere least with their services and activities.

AB1, s. 2 Section 2. 13.101 (18) of the statutes is created to read:

AB1,6,21 13.101 (18) Notwithstanding sub. (4), the committee may not transfer moneys from the appropriation account under s. 20.435 (4) (xc) to another appropriation account.

AB1, s. 3 Section 3. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB1, s. 4 Section 4. 20.395 (6) (ac) of the statutes is created to read:

AB1,7,9 20.395 (6) (ac) Principal repayment and interest, major highway projects and southeast Wisconsin freeway and state highway rehabilitation projects, state funds. From the general fund, a sum sufficient to reimburse s. 20.866 (1) (u) for the payment of principal and interest costs incurred in financing major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects, as provided under ss. 20.866 (2) (uut) and 84.557, and to make payments under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a).

AB1, s. 5 Section 5. 20.435 (4) (gp) of the statutes is repealed.

AB1, s. 6 Section 6. 20.435 (4) (xc) of the statutes is created to read:

AB1,8,2 20.435 (4) (xc) Hospital assessment fund; hospital payments and refunds. Biennially, from the medical assessment trust fund, the amounts in the schedule for increased payments and refunds to hospitals and for higher capitated payment rates under s. 49.45 (58) (a), as the Medical Assistance nonfederal share, in order to increase payment rates in excess of the aggregate inpatient and outpatient hospital payment rates in effect in fiscal year 2006-07 for services provided by hospitals under the Medical Assistance program administered under subch. IV of ch. 49.

AB1, s. 7 Section 7. 20.866 (1) (u) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB1,8,17 20.866 (1) (u) Principal repayment and interest. A sum sufficient from moneys appropriated under sub. (2) (zp) and ss. 20.115 (2) (d) and (7) (b), (f), and (s), 20.190 (1) (c), (d), (i), and (j), 20.225 (1) (c) and (i), 20.245 (1) (e) and (j), 20.250 (1) (c) and (e), 20.255 (1) (d), 20.285 (1) (d), (db), (im), (in), (je), (jq), (kd), (km), and (ko) and (5) (i), 20.320 (1) (c) and (t) and (2) (c), 20.370 (7) (aa), (ac), (ag), (aq), (ar), (at), (au), (bq), (br), (ca), (cb), (cc), (cd), (ce), (cf), (cg), (ea), (eq), and (er), 20.395 (6) (ac), (af), (aq), (ar), and (au), 20.410 (1) (e), (ec), and (ko) and (3) (e), 20.435 (2) (ee) and (6) (e), 20.465 (1) (d), 20.485 (1) (f) and (go), (3) (t) and (4) (qm), 20.505 (4) (es), (et), (ha), and (hb) and (5) (c), (g), (kc), and (kd), 20.855 (8) (a), and 20.867 (1) (a) and (b) and (3) (a), (b), (bm), (bn), (bp), (bq), (br), (bu), (bv), (g), (h), (i), and (q) for the payment of principal, interest, premium due, if any, and payment due, if any, under an agreement or ancillary arrangement entered into under s. 18.06 (8) (a) relating to any public debt contracted under subchs. I and IV of ch. 18.

AB1, s. 8 Section 8. 20.866 (2) (uut) of the statutes is created to read:

AB1,8,24 20.866 (2) (uut) Transportation; major highway projects and southeast Wisconsin freeway and state highway rehabilitation projects. From the capital improvement fund, a sum sufficient for the department of transportation to fund major highway projects, southeast Wisconsin freeway rehabilitation projects, and state highway rehabilitation projects, as provided under s. 84.557. The state may contract public debt in an amount not to exceed $190,000,000 for these purposes.

AB1, s. 9 Section 9. 25.17 (1) (gs) of the statutes is created to read:

AB1,9,1 25.17 (1) (gs) Hospital assessment fund (s. 25.772);

AB1, s. 10 Section 10. 25.69 of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB1,9,10 25.69 Permanent endowment fund. There is established a separate nonlapsible trust fund designated as the permanent endowment fund, consisting of all of the proceeds from the sale of the state's right to receive payments under the Attorneys General Master Tobacco Settlement Agreement of November 23, 1998, and all investment earnings on the proceeds. There is transferred from the permanent endowment fund to the Medical Assistance trust fund $50,000,000 $65,000,000 in each fiscal year.

AB1, s. 11 Section 11. 25.77 (11) of the statutes is created to read:

AB1,9,13 25.77 (11) All moneys transferred under 2007 Wisconsin Act .... (this act), section 9221 (2).

AB1, s. 12 Section 12. 25.772 of the statutes is created to read:

AB1,9,17 25.772 Hospital assessment fund. There is established a separate nonlapsible trust fund designated as the hospital assessment fund, to consist of all moneys received under s. 50.375 from assessments on hospitals.

AB1, s. 13 Section 13. 46.27 (9) (a) of the statutes is amended to read:

AB1,9,25 46.27 (9) (a) The department may select up to 5 counties that volunteer to participate in a pilot project under which they will receive certain funds allocated for long-term care. The department shall allocate a level of funds to these counties equal to the amount that would otherwise be paid under s. 20.435 (4) (b), (gp), or (w), to nursing homes for providing care because of increased utilization of nursing home services, as estimated by the department. In estimating these levels, the department shall exclude any increased utilization of services provided by state centers for the developmentally disabled. The department shall calculate these amounts on a calendar year basis under sub. (10).

AB1, s. 14 Section 14. 46.27 (10) (a) 1. of the statutes is amended to read:

AB1,10,9 46.27 (10) (a) 1. The department shall determine for each county participating in the pilot project under sub. (9) a funding level of state medical assistance expenditures to be received by the county. This level shall equal the amount that the department determines would otherwise be paid under s. 20.435 (4) (b), (gp), or (w), or because of increased utilization of nursing home services, as estimated by the department.

AB1, s. 15 Section 15. 46.275 (5) (a) of the statutes is amended to read:

AB1,10,16 46.275 (5) (a) Medical Assistance reimbursement for services a county, or the department under sub. (3r), provides under this program is available from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w). If 2 or more counties jointly contract to provide services under this program and the department approves the contract, Medical Assistance reimbursement is also available for services provided jointly by these counties.

AB1, s. 16 Section 16. 46.275 (5) (c) of the statutes is amended to read:

AB1,10,24 46.275 (5) (c) The total allocation under s. 20.435 (4) (b), (gp), (o), and (w) to counties and to the department under sub. (3r) for services provided under this section may not exceed the amount approved by the federal department of health and human services. A county may use funds received under this section only to provide services to persons who meet the requirements under sub. (4) and may not use unexpended funds received under this section to serve other developmentally disabled persons residing in the county.

AB1, s. 17 Section 17. 46.283 (5) of the statutes is amended to read:

AB1,11,4 46.283 (5) Funding. From the appropriation accounts under s. 20.435 (4) (b), (bm), (gp), (pa), and (w) and (7) (b), (bd), and (md), the department may contract with organizations that meet standards under sub. (3) for performance of the duties under sub. (4) and shall distribute funds for services provided by resource centers.

AB1, s. 18 Section 18. 46.284 (5) (a) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB1,11,13 46.284 (5) (a) From the appropriation accounts under s. 20.435 (4) (b), (g), (gp), (im), (o), and (w) and (7) (b), (bd), and (g), the department shall provide funding on a capitated payment basis for the provision of services under this section. Notwithstanding s. 46.036 (3) and (5m), a care management organization that is under contract with the department may expend the funds, consistent with this section, including providing payment, on a capitated basis, to providers of services under the family care benefit.

AB1, s. 19 Section 19. 46.485 (2g) (intro.) of the statutes is amended to read:

AB1,11,20 46.485 (2g) (intro.) From the appropriation accounts account under s. 20.435 (4) (b) and (gp), the department may in each fiscal year transfer funds to the appropriation under s. 20.435 (7) (kb) for distribution under this section and from the appropriation account under s. 20.435 (7) (mb) the department may not shall distribute more than $1,330,500 in each fiscal year to applying counties in this state that meet all of the following requirements, as determined by the department:

AB1, s. 20 Section 20. 49.45 (2) (a) 17. of the statutes is amended to read:

AB1,12,2 49.45 (2) (a) 17. Notify the governor, the joint committee on legislative organization, the joint committee on finance and appropriate standing committees, as determined by the presiding officer of each house, if the appropriation accounts account under s. 20.435 (4) (b) and (gp) are is insufficient to provide the state share of medical assistance.

AB1, s. 21 Section 21. 49.45 (5m) (ag) of the statutes is repealed.

AB1, s. 22 Section 22. 49.45 (5m) (am) of the statutes is amended to read:

AB1,12,13 49.45 (5m) (am) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), the department shall distribute not more than $2,256,000 $5,256,000 in each fiscal year 2007-08 and each fiscal year thereafter, to provide supplemental funds to rural hospitals that, as determined by the department, have high utilization of inpatient services by patients whose care is provided from governmental sources, and to provide supplemental funds to critical access hospitals, except that the department may not distribute funds to a rural hospital or to a critical access hospital to the extent that the distribution would exceed any limitation under 42 USC 1396b (i) (3).

AB1, s. 23 Section 23. 49.45 (6m) (ag) (intro.) of the statutes is amended to read:

AB1,12,21 49.45 (6m) (ag) (intro.) Payment for care provided in a facility under this subsection made under s. 20.435 (4) (b), (gp), (o), (pa), or (w) shall, except as provided in pars. (bg), (bm), and (br), be determined according to a prospective payment system updated annually by the department. The payment system shall implement standards that are necessary and proper for providing patient care and that meet quality and safety standards established under subch. II of ch. 50 and ch. 150. The payment system shall reflect all of the following:

AB1, s. 24 Section 24. 49.45 (6v) (b) of the statutes is amended to read:

AB1,13,3 49.45 (6v) (b) The department shall, each year, submit to the joint committee on finance a report for the previous fiscal year, except for the 1997-98 fiscal year, that provides information on the utilization of beds by recipients of medical assistance in facilities and a discussion and detailed projection of the likely balances, expenditures, encumbrances and carry over of currently appropriated amounts in the appropriation accounts under s. 20.435 (4) (b), (gp), and (o).

AB1, s. 25 Section 25. 49.45 (6x) (a) of the statutes is amended to read:

AB1,13,10 49.45 (6x) (a) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), the department shall distribute not more than $4,748,000 in each fiscal year, to provide funds to an essential access city hospital, except that the department may not allocate funds to an essential access city hospital to the extent that the allocation would exceed any limitation under 42 USC 1396b (i) (3).

AB1, s. 26 Section 26. 49.45 (6y) (a) of the statutes is amended to read:

AB1,13,21 49.45 (6y) (a) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), the department shall may distribute funding in each fiscal year to provide supplemental payment to hospitals that enter into a contract under s. 49.02 (2) to provide health care services funded by a relief block grant, as determined by the department, for hospital services that are not in excess of the hospitals' customary charges for the services, as limited under 42 USC 1396b (i) (3). If no relief block grant is awarded under this chapter or if the allocation of funds to such hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department may distribute funds to hospitals that have not entered into a contract under s. 49.02 (2).

AB1, s. 27 Section 27. 49.45 (6y) (am) of the statutes is amended to read:

AB1,14,4 49.45 (6y) (am) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (h), (gp), (o), and (w), the department shall distribute funding in each fiscal year to provide supplemental payments to hospitals that enter into contracts under s. 49.02 (2) with a county having a population of 500,000 or more to provide health care services funded by a relief block grant, as determined by the department, for hospital services that are not in excess of the hospitals' customary charges for the services, as limited under 42 USC 1396b (i) (3).

AB1, s. 28 Section 28. 49.45 (6z) (a) (intro.) of the statutes, as affected by 2007 Wisconsin Act 20, is amended to read:

AB1,14,18 49.45 (6z) (a) (intro.) Notwithstanding sub. (3) (e), from the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), the department may distribute funding in each fiscal year to supplement payment for services to hospitals that enter into indigent care agreements, in accordance with the approved state plan for services under 42 USC 1396a, with relief agencies that administer the medical relief block grant under this chapter, if the department determines that the hospitals serve a disproportionate number of low-income patients with special needs. If no medical relief block grant under this chapter is awarded or if the allocation of funds to such hospitals would exceed any limitation under 42 USC 1396b (i) (3), the department may distribute funds to hospitals that have not entered into indigent care agreements. The department may not distribute funds under this subsection to the extent that the distribution would do any of the following:

AB1, s. 29 Section 29. 49.45 (8) (b) of the statutes is amended to read:

AB1,14,24 49.45 (8) (b) Reimbursement under s. 20.435 (4) (b), (gp), (o), and (w) for home health services provided by a certified home health agency or independent nurse shall be made at the home health agency's or nurse's usual and customary fee per patient care visit, subject to a maximum allowable fee per patient care visit that is established under par. (c).

AB1, s. 30 Section 30. 49.45 (24m) (intro.) of the statutes is amended to read:

AB1,15,5 49.45 (24m) (intro.) From the appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), in order to test the feasibility of instituting a system of reimbursement for providers of home health care and personal care services for medical assistance recipients that is based on competitive bidding, the department shall:

AB1, s. 31 Section 31. 49.45 (52) of the statutes is amended to read:

AB1,15,16 49.45 (52) Payment adjustments. Beginning on January 1, 2003, the department may, from the appropriation account under s. 20.435 (7) (b), make Medical Assistance payment adjustments to county departments under s. 46.215, 46.22, 46.23, or 51.42, or 51.437 or to local health departments, as defined in s. 250.01 (4), as appropriate, for covered services under s. 49.46 (2) (a) 2. and 4. d. and f. and (b) 6. b., c., f., fm., g., j., k., L., Lm., and m., 9., 12., 12m., 13., 15., and 16. Payment adjustments under this subsection shall include the state share of the payments. The total of any payment adjustments under this subsection and Medical Assistance payments made from appropriation accounts under s. 20.435 (4) (b), (gp), (o), and (w), may not exceed applicable limitations on payments under 42 USC 1396a (a) (30) (A).

AB1, s. 32 Section 32. 49.45 (58) of the statutes is created to read:

AB1,16,2 49.45 (58) Health maintenance organization payments to hospitals. (a) The department shall develop a methodology for calculating rate increases for inpatient and outpatient hospital services in connection with the assessment imposed on hospitals under s. 50.375. The methodology shall incorporate encounter data provided by health maintenance organizations and information that the department uses to calculate the capitated rates that the department pays health maintenance organizations for providing services to recipients of medical assistance. The department shall publicly disclose the methodology. The department shall review the methodology at least once every 12 months.

AB1,16,5 (b) The department shall require, as a term of contracts with health maintenance organizations to provide medical assistance services, that the health maintenance organization do all of the following:

AB1,16,8 1. Make monthly prospective payments, calculated using the methodology under par. (a), to hospitals that serve medical assistance recipients who are enrolled in the health maintenance organization.

AB1,16,12 2. Calculate the amounts that result from applying the rate increases that are derived using the methodology under par. (a) to services for recipients of medical assistance for which hospitals submit claims to the health maintenance organization.

AB1,16,17 3. Within 90 days after the end of each 6-month period, compare the amounts that the health maintenance organization paid hospitals under subd. 1. for the 6-month period with the amounts calculated under subd. 2. for services provided during that same period. If the amounts under subd. 2. exceed the amounts of the payments under subd. 1., pay hospitals the difference within 90 days.

AB1,16,22 (c) If the amounts that a health maintenance organization paid hospitals under par. (b) 1. for a 6-month period exceed the amounts calculated under par. (b) 2. for services provided during the same period, hospitals shall pay the health maintenance organization the difference within 90 days after the comparison of amounts under par. (b) 3. is completed.

AB1,17,4 (d) If the department determines that a health maintenance organization has not complied with a condition under par. (b), the department shall require the health maintenance organization to comply with the condition within 15 days after the department's determination. The department may terminate a contract with a health maintenance organization for failure to comply with a condition under par. (b). The department shall audit health maintenance organizations to determine whether they have complied with the conditions under par. (b).

AB1,17,13 (e) If a health maintenance organization and hospital cannot resolve the amount that a health maintenance organization owes a hospital under par. (b) 3. or that a hospital owes a health maintenance organization under par. (c), and either the health maintenance organization or the hospital, within 6 months after the end of the time period to which the disputed amount relates, requests that the department determine the amount owed, the department shall determine the amount within 90 days after the request is made. The health maintenance organization or hospital is, upon request, entitled to a contested case hearing under ch. 227 on the department's determination.

AB1, s. 33 Section 33. 49.472 (6) (a) of the statutes is amended to read:

AB1,17,20 49.472 (6) (a) Notwithstanding sub. (4) (a) 3., from the appropriation account under s. 20.435 (4) (b), (gp), or (w), the department shall, on the part of an individual who is eligible for medical assistance under sub. (3), pay premiums for or purchase individual coverage offered by the individual's employer if the department determines that paying the premiums for or purchasing the coverage will not be more costly than providing medical assistance.

AB1, s. 34 Section 34. 49.472 (6) (b) of the statutes is amended to read: